Are Retail Traders Driving the Decline?
Bitcoin (BTC) recently reached an all-time high (ATH) of $109,588. However, the coin’s price has since fallen by 8%, in part due to reduced retail trading activity.
As demand from this group of Bitcoin investors weakens, the price of Bitcoin is likely to continue its downward trend in the short term.
Bitcoin retail traders reduce accumulation
in a new ReportCaueconomy, an analyst under the pseudonym CryptoQuant, noted that retail traders typically drive smaller but significant market moves, but over the past month, Bitcoin accumulation has steadily declined.
Data from Caucenomy shows that BTC on-chain trading activity under $10,000 has dropped by 19.34% over the past few days, reflecting a decline in retail trading activity. Even if the price of the coin hits The ATH on Monday was $109,588.
Given Bitcoin’s current highs, the drop in retail activity is noteworthy volatility. Typically, periods of high price volatility like this are accompanied by increased on-chain activity as retail investors look to buy the dip or profit on the move up. However, the decline in on-chain transactions suggests that retail traders are not participating in Bitcoin transactions at the expected levels under such market conditions.
Furthermore, despite the hype surrounding the recent ATH, BTC retail investors have not held their positions for the long term, confirming their declining accumulation. According to IntoTheBlock, this group of investors has reduced their holding time by 15% in the past month.
When retail traders reduce their holding time, it indicates that small and medium investors have lost confidence and become more cautious. This could lead to more frequent buy and sell cycles, increase market volatility, and potentially put downward pressure on the token’s price.
BTC Price Prediction: Will $94,000 Be the Next Stop?
Without significant participation from small traders, the Bitcoin market may lack the necessary support to sustain its upward momentum toward all-time highs. If these token holders continue to sell off, the price of BTC could drop to $94,523.
On the other hand, if they resume coin accumulation, The price of BTC may Try to get back to the all-time high and surpass it.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
