Bitcoin approaches new highs as retail interest remains low
retail interest Bitcoin Although its price is about to reach an all-time high, its price is still very low. Many observers, including Bitcoin expert Miles Deutscher, see a gap between rising prices and retail activity. Deutscher recently posted on X that Bitcoin is “on the verge of breaking through all-time highs,” while participation from retail investors has been minimal.
According to data from CoinGecko, Bitcoin almost hit an all-time high on October 29, hitting $73,562 before stabilizing at around $72,300. While this high points to the solidity of Bitcoin’s price, retail investors aren’t as excited as they were during previous bull runs. According to Google Trends data, compared with the peak of search volume in late May 2021, interest in the keyword “Bitcoin” only scored 23 points (out of 100 points).
Other topics, such as artificial intelligence, have attracted more attention than the recent surge in Bitcoin’s price. Google’s artificial intelligence search traffic significantly exceeds that of Bitcoin, reflecting a shift in public interest. Historically, retail interest surges during Bitcoin rallies, often pushing crypto apps like Coinbase to the top of app stores. Currently, according to Sensor Tower data, Coinbase ranks 308th in the Apple App Store, far from its previous highs.
Despite low overall interest, Coinbase has shown some signs of activity, rising 167 positions between October 28 and 29. However, cryptocurrency analytics firm CryptoQuant reports that while there is some retail participation, large investors dominate in 2024.
Source: CryptoQuant
Crypto quantization The data also showed that daily Bitcoin transfer volumes from retail investors hit their lowest level since 2020, with $326 million worth of transactions recorded on September 21. Price increases come as retail investors tend to quickly switch to Bitcoin.
Institutional investors have had much higher demand for Bitcoin than retail investors, especially over the past 12 months. Ki Young Ju, founder and CEO of CryptoQuant, emphasized that institutional wallet activity is twice as high as retail wallet activity. A significant factor in this growth has been the launch of U.S. spot Bitcoin exchange-traded funds (ETFs). Since their launch in January, the ETFs have driven more than $22.7 billion in net flows, according to Farside.
The rise in Bitcoin prices reflects renewed institutional interest, but retail investors are taking a wait-and-see approach. Search trends, app rankings, and transfer data all suggest that individual investors are not returning to Bitcoin with the same enthusiasm as during past bull markets. As institutional demand continues to grow, especially through vehicles such as ETFs, and as Bitcoin potentially reaches new highs, retail investors may gradually catch up in the future.
