Bitcoin Retail Demand Drops 30% as Miners Activity Plummets

On-chain data indicates a decline in retail interest in Bitcoin, as the volume of transactions from small holders has decreased over the past month. This trend is evident in the "Retail Investor Demand" metric, which estimates the demand from the smallest investors by analyzing transaction volumes below $10,000. Initially, during the latest bull rally, this metric showed a positive 30-day change, suggesting increased transfer activity among small investors. However, after Bitcoin reached its new all-time high (ATH), the metric reversed direction and has since dipped into negative territory, indicating a decline in retail investor volume on a monthly basis.

Despite the recent price surge, the 30-day change in Retail Investor Demand never reached high levels, contrasting sharply with the rally from the end of 2024. This suggests that the recent price increase failed to generate significant interest among small investors and also failed to sustain the attention it did manage to attract. The shift to a negative monthly change in Retail Investor Demand could be attributed to the bearish price action Bitcoin has experienced since its ATH. However, it is noteworthy that Bitcoin's price remains close to this record, making the sentiment among small investors particularly interesting.

The decline in retail interest is further supported by data from the institutional DeFi solutions provider Sentora, which shows a significant drop in the volume share of Bitcoin miners. This decrease implies that these chain validators have seen their activity plummet relative to the rest of the network, reaching the lowest level since 2022. This trend aligns with the overall decrease in retail investor demand, as both small holders and miners appear to be less active in the market.

Bitcoin's price has been consolidating around the $105,200 mark, exhibiting sideways movement in recent days. This price action, combined with the decline in retail investor demand and miner activity, suggests a period of market consolidation following the recent ATH. The lack of significant retail interest, despite the price being near its all-time high, indicates a cautious approach from small investors, who may be waiting for clearer market signals before increasing their activity.