Bitcoin has been on a roll lately, climbing to over $69,000 in the past couple of weeks. But despite this big price jump, small-time investors aren’t exactly rushing to buy in.
Retail Investors Holding Steady, But Slowly
According to a recent report by CryptoQuant, retail investors have been adding to their Bitcoin holdings, but at a much slower pace than usual. Over the past four months, they’ve picked up about 18,000 Bitcoin, which is worth around $1.2 billion. While this shows some interest, it’s a far cry from the rapid buying seen in the past.
In fact, retail investors only bought a net 1,000 Bitcoin in the last month, which is a tiny amount compared to their previous buying sprees. This slow and steady approach is a change from May 2023, when they were scooping up Bitcoin at a much faster rate.
Whales Are Still Hungry
Meanwhile, big-time investors, often called “whales,” have been gobbling up Bitcoin. They’ve added a whopping 173,000 Bitcoin to their holdings this year, which is worth a cool $11.5 billion.
What Does This Mean for Bitcoin?
This lack of retail investor excitement could be a cause for concern. It could mean that the market isn’t as liquid as it could be, and there might not be enough buying pressure to keep the price going up.
However, there’s also a positive side to this story. It could mean that retail investors are holding onto their Bitcoin, rather than selling it off. Data shows that Bitcoin transfers to exchanges, which is a sign of selling, have decreased this year.
The Bottom Line
While it’s still early to tell what the future holds for Bitcoin, it’s interesting to see that retail investors are taking a more cautious approach this time around. It’s possible that they’ve learned from past price swings and are waiting for more signals before jumping back into the market.
