On-chain data shows the Bitcoin volume associated with retail traders is in a long-term decline, despite the fact that the BTC price has been rising.

Small Bitcoin Transactions Have Been Going Down

As pointed out by CryptoQuant author Axel Adler Jr in a new post on X, small Bitcoin transactions have seen their volume follow a downtrend over the past year. “Small transfers” in this context refer to the moves involving a value of $1,000 or less.

Such transactions correspond to a portion of the activity from the retail investors, but doesn’t make up for all of the retail volume. Generally, retail transfers are considered to go up to $10,000 in value. Thus, the transactions up to $1,000 would only represent the activity from the smallest among the retail cohort.

Now, here is the chart shared by the analyst that shows the trend in the Bitcoin volume of transactions valued at $1,000 or less over the last few years:

The value of the metric appears to have seen lower highs in recent months | Source: @AxelAdlerJr on X

As displayed in the above graph, the Bitcoin volume associated with the small retail hands has seen a few different phases with high levels since Spring 2024. These peaks in activity from the smallest of investors have followed an interesting pattern, however; they have progressively been getting smaller with each high in activity.

The pattern has maintained despite the fact that the cryptocurrency’s price has seen a major jump in this period. Currently, the 30-day simple moving average (SMA) value of the indicator is sitting at $106.8 million, which is notably lower than some of the earlier peaks.

“There’s now an obvious divergence in the retail market: price going up, retail activity falling,” notes Adler

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Author: Keshav Verma