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Retail investors slow in Bitcoin accumulation amid market rally

Retail investors slow in Bitcoin accumulation amid market rally

GrafaGrafa2024/10/28 20:37
By:Mahathir Bayena

According to a report by CryptoQuant, retail Bitcoin (CRYPTO:BTC) investors are lagging in their accumulation, growing their holdings at a historically slow pace. 

Over the past 30 days, retail investors increased their holdings by only 1,000 BTC, bringing their total to 1.753 million BTC. 

This is slightly below the 1.765 million BTC held at the end of 2023. 

Despite Bitcoin's rise towards the $70,000 mark, retail investors have shown restrained buying activity, a trend that may not necessarily be negative for the market. 

Since July 3, when retail holdings hit a local bottom, the group has increased their total by 18,000 BTC. 

However, this pace of growth contrasts with previous periods of rapid accumulation, such as April 2020 after the COVID-19 crash and April 2021 during the last bull market peak. 

The most substantial growth in retail holdings occurred during the 2022 bear market, when holdings increased by 347,000 BTC. 

In contrast, larger investors have been actively adding to their positions, accumulating 173,000 BTC since the beginning of 2024. 

Retail investors, on the other hand, have only increased their holdings by 30,000 BTC year-to-date, highlighting a divergence in investment patterns. 

Retail investor activity has also declined in terms of Bitcoin transfers to exchanges. 

According to CryptoQuant, retail BTC transfers to exchanges have dropped from 2,700 BTC in early 2023 to 1,400 BTC this year. 

Analysts note that this indicates retail investors are not selling their assets aggressively, which may signal cautious optimism among smaller market participants.

At the time of reporting, the Bitcoin price was $67,600.50.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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