As Bitcoin nears the $70,000 mark, large investors are showing increased interest, while small investors seem to be holding back. The lower transfer volumes and limited purchasing activity among retail investors are being viewed as a potentially positive signal for upcoming price movements.
Large Investors Drive Demand While Small Investors Hold Steady
According to a new report from CryptoQuant, small investors’ accumulation of Bitcoin has been slower than expected. Over the last 30 days, retail holdings have only increased by about 1,000 BTC, with a total increase of 18,000 BTC since July—still falling short of the 2023 peak of 1.765 million BTC. The last significant accumulation by small investors occurred during the FTX crisis in 2022, when they amassed 347,000 BTC in a bearish market. Since early 2023, large investors have stepped up with a net purchase of 173,000 BTC, highlighting their active role in the market.
Furthermore, Bitcoin transfers from retail investors to exchanges have significantly dropped, falling from 2,700 BTC per day at the beginning of 2023 to around 1,400 BTC in 2024. This decrease in transfer activity indicates that small investors are largely holding onto their Bitcoin and appear cautious about selling. Analysts at Turkish NY Radio note that historically, lower transfer activity often precedes major price moves, suggesting that the cautious stance of small investors could be a positive signal for the market.
Bitcoin’s Price Fluctuations Reflect Ongoing Volatility
Bitcoin is currently trading at $67,114, experiencing a 0.7% decline in the last 24 hours while ranging between $65,563 and $68,654. With a market cap of $1.327 trillion and a circulating supply of 19.77 million BTC, most of Bitcoin’s total supply is now on the market. The 24-hour trading volume reached $47.2 billion, indicating steady investor interest amid fluctuating prices and market volatility.
As demand for Bitcoin as a hedge against inflation grows, investor confidence is further bolstered by the potential for Spot Bitcoin ETFs. This dynamic continues to support long-term optimism, with many viewing Bitcoin as “digital gold.” With large investors taking a leading role and small investors holding back, the market’s evolving dynamics hint at a period of potential growth and stability for Bitcoin.
