Average demand for Bitcoin (BTC) among retail investors fell to its lowest level in…
Average demand for Bitcoin (BTC) among retail investors fell to a five-month low to levels last seen in January – which ended with a 75% increase over the two months following.
The average monthly change in Bitcoin demand among retail investors – those with remittance volume of up to $10,000 – fell to -17% over the past 30 days, according to data shared with X on June 10 by CryptoQuant author Axel Adler.
Adler added that a “previous similar drop to -18%” in January saw Bitcoin rise from $40,000 to $70,000 – when it surged following the approval of Bitcoin exchange-traded funds (ETFs). in the United States, pushing Bitcoin to its price in the United States. . Half-March. $73,679 is an all-time high.
“I also noticed that this group reacts quickly to any changes in the market,” Adler said.
Last month, Adler used the same procedure to show that demand fell 31% in the 17 days to May 24, falling to -14.50%. He noted increased interest in GameStop (GME) and Ether (ETH), likely due to the initial approval of spot ether ETFs.
Analysts have previously suggested that the change in Bitcoin demand is due to several factors, including the US Consumer Price Index (CPI) which tracks inflation.
When the CPI falls, it can make riskier assets like Bitcoin more attractive to investors, as traditional savings and term deposits offer less profitable returns as interest rates fall.
Markus Thelen, head of research at 10x, told Cointelegraph in May that the CPI would need to fall to 3.3% on June 12 – when the Bureau of Labor Statistics (BLS) releases the data – for Bitcoin to reach unprecedented heights. .
Bitcoin fell below $69,000 on June 11 – the asset’s all-time high in November 2021 – a level traders are watching closely. At press time, bitcoin is trading at $67,350, down 3.19% over the past 24 hours, according to CoinMarketCap.
The sudden drop wiped out $52.87 million worth of long Bitcoin positions over the past day. Open interest (OI) remained above the closely watched $35 billion level, according to CoinGlass data.
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Although traders were hoping that Bitcoin would quickly bounce back above $70,000 after falling below it on June 8, it has yet to do so.
Futures traders do not appear to expect a near-term rebound, despite CPI results scheduled for June 12, with $2.14 billion in short positions at stake in the event of a rebound.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.
