Recent on-chain data indicates a waning interest from Bitcoin retail investors, as their activity has noticeably dropped over the past month.
In recent developments, it’s become evident that Bitcoin’s retail sector is experiencing a downturn. CryptoQuant community analyst Maartunn recently discussed this trend, highlighting a notable shift in what’s known as “Retail Investor Demand.” Essentially, this term refers to an indicator that measures how much retail traders are using the Bitcoin network.
Typically, retail investors are the smaller fish in the crypto ocean, with transaction sizes generally under $10,000. Thus, any volume from transactions less than this amount is assumed to originate from these smaller players. The Retail Investor Demand metric measures how this volume has changed over a 30-day span. The accompanying chart from Maartunn illustrates its trend over recent years.
From the chart, it’s clear that during the bull rally at the end of 2024, the Retail Investor Demand soared to significant positive levels. This spike reflects a mass entry into the market, driven by the excitement of rising prices. While such enthusiasm is common during a bull run, the magnitude of this rise was particularly striking, with the metric peaking at 31.7%.
But as the rally cooled and the market turned south, the pace of retail investor activity began to drop. As 2025 has unfolded, this downward trend has only steepened, pushing the Retail Investor Demand to a low of negative 21.7%, marking the largest decline since mid-2021.
Interestingly, this pullback might not spell all bad news for Bitcoin. Historically, a dip in retail interest, like the one in 2021, has coincided with price bottoms, suggesting a potentially positive long-term outlook.
Meanwhile, in the world of Ethereum, the second-largest cryptocurrency by market capitalization, there has been a noteworthy exodus from centralized exchanges. Market intelligence platform IntoTheBlock reports $1.42 billion worth of Ethereum has been withdrawn over the last week, hinting at possible accumulation by investors.
Switching gears back to Bitcoin’s price performance, after dipping near $91,000 yesterday, the cryptocurrency has managed a modest recovery, trading now around $93,800. Its recent price action suggests a generally downward trajectory, although recoveries like today’s provide some hope to investors.
Featured image from Dall-E, along with data from CryptoQuant.com, IntoTheBlock.com, and charts from TradingView.com, provide visual insights into these ongoing trends.
