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Bitcoin could see renewed momentum thanks to these BTC investors…

2min Read

As Bitcoin’s price fluctuates, institutional transactions decrease while retail investors take charge. Retail activity surges, hinting at a potential bull market on the horizon.

Bitcoin Retail Investors Take the Lead as Institutional Activity Declines

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  • Bitcoin’s median transfer volume has recently reached a record low.
  • However, the number of Bitcoin transactions has spiked to an all-time high.

The ever-changing price of Bitcoin [BTC] appears to have influenced a decline in institutional transactions while retail investors have taken the lead. Considering the current median transaction levels, what extent of involvement can we observe from retail holders versus institutional holders?


Read Bitcoin’s [BTC] Price Prediction 2023-24


Bitcoin Median Transfer Volume hits record-low

Glassnode Alerts recently shared a post revealing that the seven-day Moving Average Median Transaction Volume of BTC reached an all-time low. This decline became noticeable around March and has continued downward since then. As of this writing, the median transaction volume hovered around 3.5 BTC. Interestingly, this level marked the lowest point in the past five years.

Bitcoin Median Transaction Volume

Source: Glassnode

The BTC Median Transfer Volume Metric is a statistical tool for analyzing transaction activity within the Bitcoin network. It specifically focuses on determining the median value of transfer volumes associated with Bitcoin transactions.

A higher median transfer volume suggests a rise in larger-value transactions, indicating potential involvement from institutional or high-net-worth investors. On the other hand, a lower median transfer volume suggests a predominance of smaller retail transactions.

Bitcoin Transaction count spikes to ATH

Despite the noticeable decline in the Median Transaction Volume of BTC, an opposite trend was observed in the Transaction Count metric. The Transaction Count chart from Glassnode revealed that the number of transactions had been consistently increasing and recently reached a new peak.

At the time of writing, the number of transactions exceeded 631,000, marking the highest transaction count ever recorded in the history of the network.

Bitcoin number of transactions

Source: Glassnode

This surge in transaction count suggested a high activity level among retail traders, while institutional investors appear to have reduced their involvement recently. The spike indicated that retail traders actively participated in the Bitcoin network, thus increasing the transaction count.

The road to recovery?

Following a period of decline, BTC showed signs of recovery based on its daily timeframe chart. At the time of writing, it was trading above $27,000, reflecting a gain of over 1%.

Notably, this gain marked the third consecutive day of profitable trading for BTC. However, its short Moving Average (yellow line) continued to act as a resistance level around the $28,000 price range.

BTC/USD price move

Source: TradingView


How much are 1,10,100 BTCs worth today


Retail traders have remained active and engaged in the market despite the price volatility. Their consistent trading volume indicated their continued participation. However, the entrance of institutional traders into the market could signify a bull market’s beginning. It could bring a new level of momentum to Bitcoin’s price trajectory.

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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