On-chain data shows that the trading volume of Bitcoin has increased significantly recently as the cryptocurrency has moved higher.
Bitcoin Retail Volume Has Increased Over 15% Over the Past 30 Days
As explained by CryptoQuant writer Axel Adler Jr in a new post on X, demand for retail investors has increased recently. Retail investors generally refer to the portion of the BTC user base that has very small stakes.
Another way to measure the demand of these investors is by using their transaction volume. Given the small size of their holdings, these managers do not make very large transfers, so their volume can be determined only by following the transfer data, with a value of less than $10,000.
Below is a chart shared by an analyst, showing the trend in the 30-day change in retail investor transfer volume over the past few years.
The value of the metric appears to have spiked in recent days | Source: @AxelAdlerJr on X
As shown in the graph, Bitcoin trading volume has seen a negative 30-day reversal in the past, but has been reflected in the volatility of the recent rally in the asset’s price. The index has now risen to significant positive levels, indicating that interest from this group has grown significantly recently.
Retail investors being attracted to the network is not unusual in a volatile time like the one BTC has seen recently, as these owners tend to find such times exciting.
The chart shows that this group showed the same explosion in demand after the meeting in the first quarter of the year. Similar trends have been seen many times in the 2021 bull run.
Historically, rallies that have failed to accumulate stock gains have often been short-lived, as investor inflows often support such runs. From this point of view, the current rally seems safe, as the volume of sales has increased by more than 15% in the last month.
Another index to measure demand related to Bitcoin is the Coinbase Premium Index. This metric tracks the difference between Bitcoin prices listed on Coinbase (USD pair) and Binance (USDT pair).
This indicator does not reflect the demand of retail investors but of American institutional investors, who have a strong presence in Coinbase.
Like CryptoQuant head of research Julio Moreno shown in X’s post, the Bitcoin Coinbase Premium Index just shot up to a good position.
The trend in the BTC Coinbase Premium Index over the past week | Source: @jjcmoreno on X
A positive value of the indicator suggests that BTC is trading at a higher price on Coinbase compared to Binance, which means that US whales are showing demand for the cryptocurrency.
BTC price
Bitcoin is looking to test another high as its price has risen to the $75,900 mark.
Looks like the price of the coin has seen a sharp increase recently | Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
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