Bitcoin Hits $111,965.80 All-Time High Amid Low Retail Interest

Bitcoin (BTC) has reached a new all-time high of $111,965.80 on May 22, yet indicators suggest that retail investors have not significantly participated in this rally. According to Matt Sigel, head of digital assets research, data compiled from app stores shows a 14% year-over-year decline in crypto-platform downloads in April. This trend is evident across major platforms, with Binance and Crypto.com downloads dropping by 29% and 41%, respectively, and Coinbase seeing a 16% decrease. Sigel interprets these figures as evidence that individual investors either missed the rally or chose to engage through other means, such as equity proxies like mining shares.

Additionally, a Google Trends chart indicates that searches for Bitcoin were only slightly above 25% on May 20, just before BTC hit its new high. This further supports the notion that retail interest has been subdued. In contrast, spot-Bitcoin exchange-traded funds (ETFs) have seen significant inflows, reaching $44.5 billion, according to an analyst. This movement follows the record lifetime inflows of $40.3 billion that US-traded Bitcoin ETFs registered on May 8, suggesting that institutional demand has been the primary driver of the recent price surge.

On-chain signals also point to limited speculative activity. Crypto Dan, community manager for CryptoQuant Korea, notes that funding rates across major derivatives venues have risen but remain well below levels seen before corrections in March 2024 and November 2024. This indicates that leverage has not stretched market conditions to the extent seen in previous rallies. Furthermore, on-chain analysis of coin age shows that the share of BTC changing hands within one week to one month has only marginally increased, despite the price record. Long-dormant coins continue to hold firm, suggesting that whales have been less active in profit-taking transactions compared to previous market tops.

Crypto Dan also highlights that US-traded spot Bitcoin ETFs have recorded positive flows for eight consecutive sessions through May 21, bringing their collective holdings above 1.2 million BTC. This steady institutional demand, coupled with muted retail activity, could indicate that price discovery may extend if risk appetite broadens. The overall picture suggests that while Bitcoin has reached new highs, the market dynamics are being driven more by institutional investors rather than broad retail participation.