Retail Demand Boosts Bitcoin Analysis Indicating Reduced Risk Aversion

Bitcoin retail activity is mimicking the BTC price run to all-time highs after months of stalemate, new data suggests.
In one of its latest
Quicktake blog posts
on Oct. 21, onchain analytics platform CryptoQuant unveiled a 13% jump in transactions worth less than $1,000.
Bitcoin “small investors” show signs of life
Bitcoin (
BTC
) retail interest has yet to stage a noticeable comeback after
declining dramatically
following March’s all-time highs for BTC/USD.
While mainstream interest outside institutional circles remains lacking, particularly when viewed through metrics such as
Google search data
, there are signs that change is coming.
For CryptoQuant contributor Cauê Oliveira, transaction volume figures hold the key.
“In the last 30 days, retail demand grew by about 13%, highlighting a scenario that was only seen in March, when we were close to the last historical high,” he said.


Bitcoin retail investor volume (screenshot). Source: CryptoQuant
In the 30 days through Oct. 20, BTC/USD gained nearly 10%, data from
Cointelegraph Markets Pro
and
TradingView
shows.
Transaction volumes worth up to $1,000 increased by 13% in the same period, and an accompanying chart shows similarities to the weeks before the March peak.
“This recent rise in bitcoin is causing small investors to return to trading, signaling the beginning of a pattern of lower risk aversion,” Oliveira said.


BTC/USD 1-day chart. Source: TradingView
Coinbase premium lags despite $69,000 BTC price trip
Risk aversion is a theme currently on the radar for many crypto market observers.
Related:
Bitcoin price analysis sees rematch with 2021 record high vs. S&P 500
Global liquidity trends are increasing broader risk-on appetites, and commentators see the trend strengthening through the United States presidential election and beyond.
“Both BTC and ETH have yet to clear July highs but are closing in on key 70k and 2800 resistance levels,” trading firm QCP Capital wrote in its latest bulletin to Telegram channel subscribers on Oct. 22.
US retail interest in Bitcoin, meanwhile, is still
proving stubborn
.
CryptoQuant data shows that the Coinbase premium — the difference in pricing between the BTC/USD pair on the largest US exchange, Coinbase, and Binance’s BTC/USDT equivalent — is barely positive, even as Bitcoin sees its highest weekly close since early June.


Bitcoin Coinbase Premium Index. Source: CryptoQuant
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.