Key Points
- Retail investor demand for Bitcoin has reached its highest level since 2020, indicating increased market engagement.
- Bitcoin’s market capitalization has reached $1.915 trillion, approaching the psychological milestone of $100,000.
Retail Interest in Bitcoin Surges
Bitcoin [BTC] seems to be slowly regaining its momentum following a period of minimal price movement last week. The cryptocurrency has seen a 1.3% increase in the past day, bringing its trading price to $96,714 at the time of writing. This recent uptrend has pushed Bitcoin’s market capitalization to $1.915 trillion, with a 24-hour trading volume of $92.1 billion.
These figures suggest a strong market presence for the asset as it nears the significant psychological mark of $100,000. New data has highlighted a rise in retail investor interest in Bitcoin. CryptoQuant analyst Darkfost reported that Bitcoin’s 30-day retail demand change is at its highest since 2020.
Impact of Retail Demand on Bitcoin’s Market
This surge is attributed to increased retail participation, often an indication of heightened market engagement. Historically, such retail activity has been seen before local price tops, but it also signals a wider interest that could sustain momentum, especially when coupled with institutional investments.
The increase in retail interest has coincided with Bitcoin entering a sideways trading phase. Darkfost noted that retail demand could decrease during this range-bound trading period, but a break above the $100,000 resistance level could reignite retail enthusiasm. This could lead to a euphoric phase in the market, creating strong positive momentum.
However, Darkfost warned that monitoring the balance between retail and institutional activity is crucial for maintaining market growth, as institutional participation provides long-term support.
Market Indicators and Bitcoin’s Future
Data from Coinglass showed that Bitcoin’s Open Interest had increased by 1.66% before declining by 1.77%, reaching a press time valuation of $78.46 billion. The Spent Output Profit Ratio (SOPR), another important indicator tracked by Glassnode, was 1.02 at the time of writing. SOPR measures whether Bitcoin holders are selling at a profit or a loss.
A SOPR value above 1 typically indicates that investors are selling at a profit, reflecting bullish sentiment. However, the relatively low margin above 1 suggests a phase of consolidation rather than a full-scale rally.
The rise in retail demand has sparked speculation about whether Bitcoin can soon break the $100,000 barrier. Previous reports from AMBCrypto suggested that retail participation had been subdued, as reflected in the Korea Premium Index, which remained below -0.5. This suggested that retail activity was not a significant driver of the earlier price surge. However, with the rise in retail interest, the market could shift, potentially paving the way for Bitcoin to achieve this milestone.
