Bitcoin News: Retail Demand Hits Highest Level Since 2020 Bull Market

In latest Bitcoin news, small investors are fueling a big increase in BTC transactions. This took Bitcoin retail demand to its highest level since 2020.

With BTC price close to $110,000, this rising retail fervor may continue pushing BTC even higher, along with colossal BTC withdrawals from exchanges.

Bitcoin’s market performance has been generally positive. Bitcoin price is currently at $101,976, falling short of its all-time high of $103,900.47.

– Advertisement –

Bitcoin has dipped slightly over the last 24 hours by -1.21%. Yet it still shows a massive 6.25% gain over the past day.

The current price as of Dec 5, 2024 is still in a strong range between it’s low of $102,638.15 and towards its high of $103,900.47.

While there was a minor daily drop, this stability in the upper price range indicates investor interest will remain and, possibly, there will be further growth.

– Advertisement –

Retail Investor Interest For Bitcoin Peaks As Price Climbs

Bitcoin demand continues to rise, with transaction volumes from smaller investors driving the price of Bitcoin higher towards key psychological levels, according to data sourced from CryptoQuant.

Bitcoin’s price has been shooting up. It reached $100,000 within the last couple of hours, and this has coincided with a sharp uptick in Bitcoin activity.

Usually retail investors augur well, and historically, such trends tend to coincide with major market moves. Bitcoin’s short-term price direction may be influenced by the current surge in retail interest.

Demand for Bitcoin from retail investors has made Bitcoin news lately as the coin has seen its largest 30-day change since 2020.

The data shows that participants who hold their transactions between $0 and $10,000 are growing.

CryptoQuant’s charts show this trend of market behavior shifting as the green segments represent positive changes in retail demand.

According to the most recent data, retail demand is up 20 percent, levels not seen since the bull market of 2020–2021.

A growth in retail involvement usually signifies more confidence and thought in the market.

Being a natural extension of the retail surge, the Bitcoin price has been on a steady upward trajectory. This strengthens the retail demand-price movements correlation.

Looking back over cycles, this correlation is apparent—similar patterns of retail interest helped cause significant price spikes.

Retail activity is only increasing, and the effects may be profound on the way Bitcoin will behave.

If this trend continues, small investors will continue to decide the wider market, and they’ll push Bitcoin to new price levels.

Bitcoin News: Large Withdrawals Lead to Dehydrated Exchange Liquidity and is Also a Bullish Sign

Furthermore, large Bitcoin withdrawals from exchanges are another layer of bullish sentiment on top of retail activity.

Last week, CryptoQuant noted two huge Bitcoin outputs from Coinbase, round overall 19,500 BTC. The approximately $1.87 billion in these withdrawals reflects a change in investor behavior.

Often, such large-scale movements can mean that institutional investors or large holders move their assets into private wallets.

This is usually viewed as a good sign for Bitcoin to be a long-term store of value.

Importantly, these outflows are timed with a period of price stability just north of $95,000.

Withdrawals wipe out available liquidity on exchanges; the less liquidity you have, the less sell-side pressure you have.

Users of cryptocurrency often see this as a bullish signal, as there is less selling of Bitcoin in favor of holding it and having more confidence in its future price.

Investors that choose to remove their Bitcoin off exchanges are indicative of their expectation that the asset will still be worth a lot of money in the long run and support higher prices.

Bitcoin vs. Altcoin Open Interest Sees Largest Ever Divergence

Meanwhile, the crypto market at large is starting to fret over the divergence in open interest between Bitcoin and altcoins.

Latest data suggests a record high divergence in open interest from Bitcoin open interest staying steady to altcoin open interest surging.

But this wide gap between the two is key, and some observers are taking notice because historical price trends show that divergences like these can precede market reversals.

In other Bitcoin news, prices have gone down following these divergences.

This could have been a divergence between the altcoin market and a sign of an overextension within it, as a lot of speculative trading has been going on.

Increased leverage in the altcoins is mainly because traders seem to prefer taking higher risk/reward opportunities in their favor.

However, this type of behavior gives rise to questions about the perseverance of the present market dispositions.

If Bitcoin’s open interest does not catch up to the altcoins, the crypto market may see more volatility in the near term.