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CryptoQuant Founder: Decline in Bitcoin Demand May Lead to Significant Price Increase

The founder of CryptoQuant highlighted the activity of retail investors in Bitcoin, which has fallen by 17% in the last 30 days. A similar decline in the past has led to an increase in the price of Bitcoin.

Axel Adler , the founder of the analysis platform CryptoQuant , shared on the social network X (Twitter) a chart with the average monthly demand for Bitcoin (BTC) among retail investors. These are investors whose transfer volumes do not exceed $10,000.

Retail investor activity is falling

The graph shows that the activity of retail investors fell to -17% in the last 30 days.

Adler added that a similar previous decline of -18% in January of this year led to a rise in the price of Bitcoin from $40,000 to $70,000.

"I've also noticed that this group is quick to respond to any changes in the market," Adler said.

The reason for the reduced demand

Many analysts speculate that the decline in Bitcoin demand is due to several factors, including the US Consumer Price Index (CPI), which tracks inflation.

A drop in CPI may cause higher demand for riskier assets than Bitcoin, as they appear more attractive to investors. This is because traditional savings and term deposits offer less lucrative returns when interest rates fall.

Markus Thielen, head of research at 10x Research, said back in May that the CPI must fall to 3.3% on June 12 for Bitcoin to reach new price highs.

Bitcoin price drop

Bitcoin has seen a significant decline over the past 24 hours and is currently trading at around $67,200. The sudden drop in price saw as many as USD 52.87 million in Bitcoin long positions liquidated in the last day.

Despite traders' assumptions that Bitcoin would quickly rise above $70,000 after falling below that level on June 8, that hasn't happened yet.

Even futures traders don't expect Bitcoin's price to recover anytime soon. There is currently approximately $2.14 billion in short positions.
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