Key Points
- Retail investor demand for Bitcoin hits highest level since 2020, prompting market optimism.
- Bitcoin’s price sees a 1.3% increase, moving closer to the $100K psychological level.
Retail Demand for Bitcoin Soars
Bitcoin is slowly regaining its momentum after a period of minimal price movement last week.
The cryptocurrency has seen a 1.3% increase over the past day, trading at $96,714 at the time of writing.
This recent upward trend 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 as the digital asset inches closer to the critical psychological milestone of $100,000.
Retail Participation Fuels Market Optimism
Concurrent with this price performance, new data shows a rise in retail investor interest in Bitcoin.
CryptoQuant analyst Darkfost reports that Bitcoin’s 30-day retail demand change is at its highest since 2020.
This surge is attributed to growing retail participation, often a sign of increased market engagement.
Historically, such retail activity has led to local price tops, but it also indicates a broader interest that could drive sustained momentum, especially when combined with institutional investments.
The increase in retail interest comes as Bitcoin enters a sideways trading phase.
Darkfost notes that while retail demand could drop during this range-bound trading period, a break above the $100,000 resistance level could reignite retail enthusiasm.
Such a move could trigger a euphoric phase in the market, creating strong positive momentum.
However, Darkfost also warns that monitoring the balance between retail and institutional activity is crucial for maintaining market growth, as institutional participation provides long-term support.
Data from Coinglass shows that Bitcoin’s Open Interest 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 key indicator tracked by Glassnode, is currently at 1.02.
The SOPR measures whether Bitcoin holders are selling at a profit or a loss.
A SOPR value above 1 usually 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 rising retail demand has sparked speculation about whether Bitcoin can soon break the $100,000 barrier.
Previous reports suggested that retail participation had been subdued, as reflected in the Korea Premium Index, which remained below -0.5.
This indicated that retail activity was not a significant driver of the earlier price surge.
However, with retail interest now on the rise, the market could shift, potentially paving the way for Bitcoin to reach this milestone.
