Bitcoin Retail Demand Rises by 13% Amid Lower Risk Aversion, Transaction Volume Analysis Shows

According to Cointelegraph: Bitcoin (BTC) retail interest is showing signs of life, with a 13% increase in small transactions worth less than $1,000, as retail investors re-engage with the market after months of inactivity. This uptick follows Bitcoin's price surge and echoes patterns seen before previous all-time highs.Retail Investors Return Amid BTC Price RiseAccording to a recent report from on-chain analytics platform CryptoQuant, Bitcoin's retail activity has grown in line with its price movements. Over the last 30 days, BTC/USD gained nearly 10%, and during the same period, retail transaction volumes surged by 13%. These transactions, primarily from "small investors," are signaling a return of retail interest in Bitcoin.CryptoQuant contributor Cauê Oliveira noted that this rise mirrors trends seen in March 2024 when Bitcoin was nearing its previous all-time high. "Retail demand grew by about 13%, highlighting a scenario that was only seen in March when we were close to the last historical high," Oliveira said.This growth suggests a pattern of lower risk aversion among small investors, who had reduced activity during the months following Bitcoin’s price dip but are now returning as the market regains momentum.Retail Activity Builds as BTC Approaches Key ResistanceThe increased activity among small investors coincides with Bitcoin's approach to the significant $70,000 resistance level. The broader crypto market is also showing signs of renewed strength, with global liquidity trends contributing to a growing risk-on appetite, particularly as the U.S. presidential election draws near.Trading firm QCP Capital highlighted that both Bitcoin and Ethereum are nearing key resistance levels, which, if breached, could attract even more retail interest. "A break above these levels is likely to attract massive retail attention," QCP noted.U.S. Retail Interest Remains Tepid Despite Price SurgeDespite the rise in retail transactions globally, U.S. retail demand remains subdued. CryptoQuant's data shows that the Coinbase premium — the difference in pricing between Bitcoin on U.S.-based Coinbase and Binance’s BTC/USDT pair — is only marginally positive, even as Bitcoin recently hit its highest weekly close since June.This suggests that while retail interest is growing, particularly among smaller investors, it is yet to reach the levels seen during Bitcoin’s previous bull runs.With Bitcoin gaining momentum and retail investors slowly returning to the market, the outlook appears promising for further price increases. However, broader retail interest, particularly in the U.S., has yet to fully materialize. As Bitcoin approaches the $70,000 resistance level, market watchers will be keen to see if this renewed retail demand continues to push prices higher.