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On-chain data shows that the volume of Bitcoin transfers by retail investors has seen a sharp decline recently, a sign that this group may be losing interest.
Bitcoin transaction volume has been declining in hashrate recently.
As CrypoQuant author Axel Adler Jr explains in a new article, mail On X, the total BTC transfer volume for transactions between $1,000 and $10,000 has recently decreased.
the “Transport volume“Here it refers to the total amount of Bitcoin (in USD) that addresses on the network move daily. This metric is not to be confused with “trading volume,” which typically only tracks the volume of trades on spot exchanges.
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When the transfer volume value is high, it means that users are transferring large amounts on the blockchain at the moment. This trend indicates that investors are actively interested in trading assets.
On the other hand, a low scale indicates that holders may not be interested in the cryptocurrency because they are not involved in much activity on the network.
Now, here is a chart showing the trend in Bitcoin’s 30-day moving average (MA) transfer volume specifically for transactions involving the transfer of coins worth at least $1,000 and at most $10,000:
As shown in the chart above, Bitcoin transfer volume for transactions of this size rose to relatively high levels during the rally earlier in the year.
Transfers of $1,000 to $10,000 are relatively small, so their size will reflect the level of activity of the smallest investors in the market: selling by pieces.
The increase in this metric from earlier in the year indicates that rising prices have sparked interest in the asset from these investors. The chart shows that a similar trend was also observed over the previous year. bull run.
Sharp price movements generally interest individual investors, so it is not surprising that they become more active during bullish periods. This increased interest is what makes any rally sustainable for long periods. Thus, only the highs that can attract people’s interest can hope to continue.
As the chart shows, the volume of Bitcoin transfers to retail trading volume peaked in May, and has since seen a sharp decline of 30%. This means that the downward price movement made these investors disappear.
Interestingly, the downward trend in the index continued even when Bitcoin made a recovery back above $70,000 a few weeks ago, which may serve as a potential harbinger that this rally will never last.
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With 30-day retail transfer volume floating at the same lows as during the July 2021 bear market, any new rallies could also be set to fail unless the index shows a rebound.
Bitcoin price
At the time of writing, Bitcoin is trading at around $62,200, down more than 4% in the past week.
Featured image by Dall-E, CryptoQuant.com, chart by TradingView.com
