Individual investor demand in the cryptocurrency market has experienced a surge following a four-month decline. According to data from CryptoQuant, individual demand has risen by 13% over the past 30 days, reaching levels comparable to those seen in March.
The increase in individual investor demand can be attributed to the on-chain transaction volume below $10,000, which is considered a crucial metric for understanding individual investor behavior. This indicator provides accurate insights into capital movements within the network.
This upward trend suggests that investors are becoming less risk-averse, potentially indicating the start of a bull market. The rise of Bitcoin is being supported by newfound institutional interest and positive market signals. The return of small investors is seen as a positive sign, as it signifies a decrease in risk perception.
The approval of spot Bitcoin ETFs in the U.S. in January has further piqued the interest of major investment firms. Analyst Cole Garner believes that the market is still in its early stages of growth potential. Garner points out that previous market cycles are repeating themselves, and the bull market is yet to commence.
Market expert Michaël van de Poppe asserts that by comparing Bitcoin with other financial indicators, it is possible to predict when the next significant price increase will occur. Van de Poppe emphasizes that Bitcoin is currently in a consolidation phase.
In summary, the increase in individual demand, coupled with ongoing institutional interest in the cryptocurrency market, has the potential to trigger upward movements in Bitcoin’s price. It is crucial for investors to closely monitor market trends during this time.
