While institutional demand for Bitcoin (BTC) is growing, it is notable that individual investors have yet to enter the market.
Despite recent price increases, Bitcoin may not attract the attention of individual investors at the expected level. Crypto analyst Miles Deutscher shared in his post on October 29, Bitcoin‘s is about to reach its all-time high (ATH), but interest from individual investors is still very low, he said.
On October 29, Bitcoin came very close to a new high of $73,562, but then fell back to $72,300, according to CoinGecko data. Despite this strong rise in Bitcoin, data from Google Trends shows, “Bitcoin” shows that search interest has reached only 23 percent of its May 2021 peak.
Artificial intelligence gets more attention than Bitcoin.
Interestingly, despite Bitcoin’s recent price increase, traffic generated by “artificial intelligence” (AI) searches has been much higher than that of BTC over the same period. While the Coinbase app rose to the top spot on the Apple App Store in previous bull markets, it currently sits at just #308. However, Coinbase’s sudden rise of 167 places between October 28-29 suggests that crypto prices are starting to attract the attention of retail investors.
BTC Signal Rally
Through 2024, the participation of individual investors in the Bitcoin market has lagged behind large investors. On September 21, the daily volume of bitcoin transfers by individual investors fell to $326 million, the lowest level since 2020. However, according to CryptoQuant analysts, low activity by individual investors usually precedes Bitcoin rallies, and when prices rise sharply, these investors lag behind and join the market. .
The impact of institutional demand and spot ETFs
CryptoQuant CEO Ki Young Ju emphasized that over the past 12 months, demand for Bitcoin from institutional investors has doubled compared to individual investors. Bitcoin Spot Exchange Traded Funds in the US (ETF) launch contributed to the development of corporate portfolios. Since January, these ETFs have generated net inflows of $22.7 billion.
This article does not contain investment advice or recommendations. Every investment and trading venture involves risk, and readers should do their own research when making decisions.
