Bitcoin retail numbers have seen a significant drop following a recent price retracement in the market cycle, according to Ki Young Ju, the CEO of CryptoQuant. Despite the on-chain factors indicating that the market is still in a bull phase, data from major indices show differences from previous cycles. Ju explained that retail investors are not in the Fear of Missing Out stage, with trading counts on centralized exchanges and other markets showing reduced sentiments among smaller players. This is occurring despite the overall bullish price trend in the market, with a noticeable decrease in retail holders compared to the previous crypto bull run.
The rapid rise in Bitcoin prices above $99k has changed the dynamic for traders at various levels, with whales increasing buying pressure while smaller investors focus on making quick profits. The recent pullback in prices has led to increased selling and movements of assets to centralized exchanges. As of the latest update, the BTC price had dropped to $96,310, a 0.4% decrease, accompanied by low sentiments. According to CryptoQuant, short-term Bitcoin holders are transferring assets at a loss to centralized exchanges, causing panic among traders, particularly retail traders, as institutions continue to set price levels.
Institutional interest in the market has surged following the approval of spot Bitcoin ETFs, with this group of holders targeting a price rally above $100K. However, some institutions have started to take profits, leading to price declines as traders rebalance their portfolios for the next bullish wave. The largest exchange by trading volumes, Binance, has witnessed users offloading assets to prevent losses, impacting the wider market. Altcoins such as Ethereum, Solana, and BNB have seen declines of 3%, 2.2%, and 1% respectively, as traders liquidate holdings amid concerns of institutional exits. CryptoQuant emphasizes the importance of tracking the realized profits of the Binance user group to gauge market sentiment and behavior, particularly regarding profit-taking patterns that can confirm the strength of the ongoing trend.
