Recent data indicates that retail investors are starting to re-engage in the Bitcoin market, which could affect the cryptocurrency's price progression.
Increase in Bitcoin Supply Among New Users
According to a Glassnode report from July 17, the supply of Bitcoin held by first-time buyers has increased by 2.86% over the past two weeks, from 4.77 million BTC to 4.91 million. This indicates that 140,000 BTC have been added by new holders, reflecting a strong sign that fresh capital is entering the market.
Retail Investor Activity on Exchanges
Data from CryptoQuant shows that retail-sized deposits on the Binance exchange are increasing, while whale inflows have decreased by approximately $2 billion. This indicates that much of the recent momentum is being driven by smaller players.
Institutional Dominance in the Market
A recent report by Wintermute highlighted that the gap between institutional and retail behavior has widened to its largest in nearly two years. Major players hold around 67% of allocations in Bitcoin and Ethereum, while retail investors have decreased their combined share to just 37%. This suggests that while interest in Bitcoin is returning, most retail capital may still flow towards altcoins.
While data points to a resurgence of interest from retail investors, institutional players continue to dominate the market. This creates a unique dynamic to watch.