Will Bitcoin’s Rally Sustain Without Retail Investor Participation?
The post Will Bitcoin’s Rally Sustain Without Retail Investor Participation? appeared on BitcoinEthereumNews.com. Bitcoin’s recent surge has been heavily influenced by institutional investments, yet the absence of retail participation could jeopardize its long-term stability. Exchange outflows surged, causing reserves to plummet, indicating strong demand from large holders. While whale activity increases, retail trading volume has remained disappointingly low. Bitcoin [BTC] experienced a noteworthy divergence as its 30-day small investor activity has remained stagnant, even amidst significant price increases. This imbalance suggests that institutional players may be leading the market rally. Historically, for sustained bull cycles, retail involvement has been crucial, driving prices higher during middle and late stages. Without substantial retail interest, the current momentum might not be enough to secure long-lasting price growth, even with Bitcoin trading above $100k. Source: CryptoQuant Valuation metrics hint at potential overextension in Bitcoin The spot exchange flows on May 28 revealed significant outflows amounting to $721.44 million, contrasting with $616.51 million in inflows. Exchange reserves saw a decrease of 0.96%, standing at $266.49 billion at the time of reporting. This trend indicates that investors increasingly withdraw BTC from exchanges, often signaling a shift toward long-term holding or custodial services. This phenomenon has historically signaled upcoming bullish price movements, as diminishing liquid supply typically tightens order books. Source: Coinglass Indeed, valuation metrics suggest early signs of cooling, even as Bitcoin’s price continues to rise. The NVT Golden Cross—an indicator comparing price with on-chain transaction volumes—decreased by 26.06% to 1.075. Additionally, the Puell Multiple, which assesses miner revenue against historical averages, fell by 11.22% to 1.297. These results imply that Bitcoin’s price growth may be surpassing both the network’s underlying value and miner revenue standards. Retail presence diminishes as network activity drops, allowing whales to dominate Despite the price increase, Bitcoin’s network growth has slowed considerably. In the last week, new addresses decreased by 5.93%, active addresses dropped…
The post Will Bitcoin’s Rally Sustain Without Retail Investor Participation? appeared on BitcoinEthereumNews.com.
Bitcoin’s recent surge has been heavily influenced by institutional investments, yet the absence of retail participation could jeopardize its long-term stability. Exchange outflows surged, causing reserves to plummet, indicating strong demand from large holders. While whale activity increases, retail trading volume has remained disappointingly low. Bitcoin [BTC] experienced a noteworthy divergence as its 30-day small investor activity has remained stagnant, even amidst significant price increases. This imbalance suggests that institutional players may be leading the market rally. Historically, for sustained bull cycles, retail involvement has been crucial, driving prices higher during middle and late stages. Without substantial retail interest, the current momentum might not be enough to secure long-lasting price growth, even with Bitcoin trading above $100k. Source: CryptoQuant Valuation metrics hint at potential overextension in Bitcoin The spot exchange flows on May 28 revealed significant outflows amounting to $721.44 million, contrasting with $616.51 million in inflows. Exchange reserves saw a decrease of 0.96%, standing at $266.49 billion at the time of reporting. This trend indicates that investors increasingly withdraw BTC from exchanges, often signaling a shift toward long-term holding or custodial services. This phenomenon has historically signaled upcoming bullish price movements, as diminishing liquid supply typically tightens order books. Source: Coinglass Indeed, valuation metrics suggest early signs of cooling, even as Bitcoin’s price continues to rise. The NVT Golden Cross—an indicator comparing price with on-chain transaction volumes—decreased by 26.06% to 1.075. Additionally, the Puell Multiple, which assesses miner revenue against historical averages, fell by 11.22% to 1.297. These results imply that Bitcoin’s price growth may be surpassing both the network’s underlying value and miner revenue standards. Retail presence diminishes as network activity drops, allowing whales to dominate Despite the price increase, Bitcoin’s network growth has slowed considerably. In the last week, new addresses decreased by 5.93%, active addresses dropped…
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