Despite the bullish momentum of Bitcoin and the entire crypto market, data still shows that a significant ingredient in most bull runs is still lacking, at least for now. Analysis showed that as Bitcoin rallied to $52,000, the daily creation of new addresses holding the asset declined.
These data prove that the recent price boom is purely based on institutional demands, with insignificant input from retail investors. The role retailers play in each bull cycle suggests that their absence from the rally further indicates that investors are still early at this point.
As the price of #Bitcoin increases, there's a noticeable decline in the creation of new $BTC addresses daily.
This trend points towards a lack of retail participation in the current #BTC bull rally, suggesting that the recent price action is primarily fueled by institutional… pic.twitter.com/DVVfcQ20bG
— Ali (@ali_charts) February 16, 2024
Retail Still Sleeping on Bitcoin
A major sign of retail involvement in a price rally is increased Google searches. Data from Google Trends shows that the search for “bitcoin” has a score of 48 out of 100. The last time Bitcoin hit $50,000 in 2021, the score was a whopping 71 out of 100 for that week.
An increase in new addresses holding Bitcoin is also a significant sign that retail traders are beginning to join the party. A steady decline in new addresses holding Bitcoin suggests that retail has little to no impact on the recent rally.
Institutional Bull Run?
Speculations on Crypto Twitter suggest that the expected bull run has a different setting than recent ones, with a faction pushing the notion that it might be an “institutional bull run.”
The approval of the spot Bitcoin exchange-traded fund (ETF) has opened doors for institutional investment in Bitcoin. The product has seen a massive influx, with asset managers holding over $10 billion worth of Bitcoin in their arsenals.
An X user also suggests that retailers might already be in the mix, as they may be a significant part of the massive volume flowing into Bitcoin from ETFs. However the scenario, many have tipped this bull run to be very different from the previous ones.
