Bitcoin is growing, but without small investors. for what

Bitcoin is growing, but without small investors. for what

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Micaiah A.

Reaching $65,000 per Bitcoin was impressive, but that dream only lasted four days. Today, the crypto star is hovering around $63,700. A slight decline that raises questions about the participation of retail investors in this market. However, this rise does not explain their big comeback. So where does retailing really stand?

An abstract scene depicting a choppy financial market with falling graphs, symbolizing the uncertainty and volatility of the bitcoin market. In the background, blurred silhouettes of traders are quickly receding, evoking the flight of short-term investors. BTC coins are peacefully accumulating in the foreground and represent the long-term holders.

Bitcoin: Rally Without Small Investors?

IN previous bull runs in 2017 and 2021small investors, sometimes under pressure, were everywhere. Evidence? L’Coinbase app climbed to the top of the download charts. Currently, Coinbase is relegated to 438th place, far from the highs reached during previous market peaks.

The signal is clear: small investors are missing underwriters.

THE transfer volumesfor their part, they confirm this trend. THE transactions less than $100,000often carried out by individuals, today they represent only half of what they were during the last peak in 2024. So the signals are red: the frenzy of individuals seems to be far behind us.

  • Retail transactions: halved from peak in 2024;
  • Coinbase place: 438th in the ranking;
  • STH (short term holders): 2.5 million tokens held.
Total Bitcoin Transaction Volume – Source: Glassnode

Crypto trader: Goodbye STH hype?

“Short-term holders” (STHs) – those who buy bitcoins within 155 days – traditionally play a major role during market peaks. When STH owns a lot of BTC, this is often a sign end of euphoria.

But surprise, this time it’s the exact opposite. The amount of bitcoins held by these speculators is decreasing. This rally therefore looks set to take place without them.

Transaction fees are also the lowest, with only $500,000 generated per daywhich is far from periods of high activity.

” Retail investors are quieter than ever », some analysts note, indicating a potential increase yet to come, without the usual enthusiasm of individuals.

It is quite normal that many analysts say that short-term traders, seeing the situation stagnate, have abandoned the Bitcoin ship.

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Mikaia A. avatar

Micaiah A.

The blockchain and crypto revolution is in full swing! And on the day the effects are felt by the most vulnerable economy in this world, I will say against all hope that I had something to do with it

DISCLAIMER OF LIABILITY

The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.

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