Retail investors threaten Bitcoin price

Bitcoin (BTC) recently reached a new all-time high (ATH) of $109,588, but then its price fell. This was partly due to reduced activity among retail traders.

Due to lower demand from retail investors, the price of Bitcoin (BTC) may continue to fall in the short term.

Retail Traders Reduce Bitcoin Accumulation

In the new report An anonymous CryptoQuant Caueconomy analyst notes that retail traders, who typically cause small but significant market movements, have been steadily reducing their Bitcoin accumulation over the past month.

According to Caucenomy, over the past few days, on-chain activity for BTC transactions for amounts up to $10,000 has decreased by 19.34%. This reflects a decline in retail investor activity. This happened even though the coin price reached an ATH of $109,588 on Monday.

This decline in retail activity is notable. Typically, periods of such sharp price fluctuations as now are accompanied by an increase in on-chain activity. Retail investors tend to buy on dips or take profits on rallies. However, the decline in on-chain activity suggests that retail traders are not participating in BTC trading at these levels.

Additionally, despite the hype surrounding the recent ATH, retail investors are not holding their positions for long. This is confirmed by a decrease in coin accumulation. According to IntoTheBlock, this group of investors has reduced their holding time by 15% over the past month.

When retail traders reduce holding times, it signals a loss of confidence and increased caution in this category of investors. This can lead to more frequent buying and selling cycles, increasing market volatility.

BTC Price Prediction: Will the Next Stop Be $94,000

Without significant participation from small investors, the Bitcoin market may not receive the support it needs to maintain its upward momentum. If these holders continue to sell, the price could drop to $94,523.

When retail traders reduce holding times, it signals a loss of confidence and increased caution in this category of investors. This can lead to more frequent buying and selling cycles, increasing market volatility.

BTC Price Prediction: Will the Next Stop Be $94,000

Without significant participation from small investors, the Bitcoin market may not receive the support it needs to maintain its upward momentum. If these holders continue to sell, the price could drop to $94,523.

Stay informed! Subscribe to World Stock Market in Telegram.

Source: Cryptocurrency

You may also like