Individual investor demand in the cryptocurrency market has experienced a resurgence following a decline that lasted four months. According to data from CryptoQuant, there has been a 13% increase in individual demand over the past 30 days, bringing it back to levels last seen in March.
To gauge individual investor behavior, CryptoQuant uses the on-chain transaction volume below $10,000 as a crucial metric. This indicator provides accurate insights into the movement of capital within the network.
The rise in individual demand suggests that investors are becoming less risk-averse, which could potentially indicate the beginning of a bull market. The upward movement of Bitcoin is being supported by newfound institutional interest and positive market signals. The return of small investors is seen as a positive sign, indicating a decrease in risk perception.
The approval of spot Bitcoin ETFs in the U.S. in January has generated increased interest from 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 has yet to commence.
Market expert Michaël van de Poppe suggests that it is possible to predict the timing of the next significant price increase by comparing Bitcoin with other financial indicators. Van de Poppe highlights that Bitcoin is currently in a consolidation phase.
In summary, the surge in individual demand and the sustained institutional interest in the cryptocurrency market could potentially lead to upward movements in Bitcoin’s price. It is crucial for investors to closely monitor market trends during this process.
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Disclaimer: The information provided in this article should not be considered as investment advice. Investors must be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
