Individual investor demand in the cryptocurrency market has experienced a resurgence following a four-month decline, according to data from CryptoQuant. Over the past 30 days, individual demand has increased by 13%, reaching levels last seen in March.
CryptoQuant utilizes on-chain transaction volume below $10,000 as a key metric to gauge individual investor behavior. This metric provides precise insights into capital movements within the network.
The increase in demand suggests that investors are becoming less risk-averse, potentially indicating the start of a bullish market. Bitcoin’s upward trajectory is bolstered by newfound institutional interest and positive market signals. The return of small investors is seen as a signal of reduced risk perception.
The approval of spot Bitcoin ETFs in the United States in January has generated heightened interest from major investment firms. Analyst Cole Garner points out that the market is still in the early stages of its growth potential. Garner believes that previous market cycles are repeating, and the bull market is yet to commence.
Market expert Michaël van de Poppe asserts that it is possible to predict the timing of the next significant price increase by comparing Bitcoin with other financial indicators. Van de Poppe emphasizes that Bitcoin is currently in a phase of consolidation.
In summary, the increase in individual demand and ongoing institutional interest in the cryptocurrency market could potentially trigger upward movements in Bitcoin’s price. It is crucial for investors to closely monitor market trends throughout this process.
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Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
