Engaging Headline: "Retail Investor Interest in Bitcoin Surges in October"
According to blockchain analysis platform CryptoQuant, individual investor interest in Bitcoin increased in October, with blockchain activities from this group rising over the past 30 days to levels approaching those seen prior to the historic peak in March 2024. Analysts noted that individual investor demand, which had slowed between June and the end of September, rose by approximately 13% in October, resembling the scenario in March when Bitcoin prices neared record highs. Julio Moreno, Head of Research at CryptoQuant, observed that the rise in individual demand paralleled growing institutional interest. Unlike the demand in the first quarter, institutional interest in Bitcoin has steadily increased throughout the year, which Moreno suggests mirrors previous cycles in the Bitcoin market.
The upsurge in individual and institutional demand for Bitcoin was further evidenced by CryptoQuant using key indicators such as the total amount of wallets holding less than one Bitcoin. This amount increased from 1.734 million BTC in mid-March to the current 1.752 million BTC, reflecting an 18,000 BTC increase. Moreover, on-chain transaction volumes under $10,000, indicating small investor activity, also demonstrate market sentiment.
The rise in individual investor demand, coupled with increased institutional interest, has notably impacted inflows into spot Bitcoin exchange-traded funds (ETFs). Net inflows into spot Bitcoin ETFs surpassed $21 billion by mid-October. However, following seven consecutive days of positive net inflows, ETF activities reversed, beginning to show daily net outflows.
Despite a recent pullback in Bitcoin price, the network's fundamental indicators show improvement. Bitcoin mining difficulty, the measure of the computational challenge miners face to add a block, reached a new record high of 95.67 T. This metric functions as a mechanism to maintain stable BTC production for the world's largest blockchain network.
In October, the Bitcoin hash rate also continued to increase, reaching a new record high of 900 EH/s. However, within days, the momentum decreased, and the hash rate fell to 730 EH/s. Nevertheless, the hash rate shows a 70% year-on-year increase compared to the same period last year. These metrics are carefully monitored as they reflect the robustness and performance of the Bitcoin network.
Regarding the current Bitcoin price, it continues its negative trend after rising to $69,500 at the start of the new week due to subsequent sell-offs. The cryptocurrency, which has fallen by nearly 4% this week, dipped to $66,300 today, maintaining its downward trend. Last week, Bitcoin registered a significant rise with a nearly 10% surge. However, it was once again rejected in the $69,000 band, where it has faced selling pressure in recent months.