Bitcoin’s price performance remains under pressure, with the asset experiencing a drop of 2.3% over the past week. This decline pushes BTC’s value even further from its January all-time high of over $109,000.
Amid the bearish momentum, analysts are observing signs of renewed interest from retail investors—a critical market segment that could shape Bitcoin’s near-term direction.
Bitcoin Retail Demand Slowly Recovers
A new analysis by CryptoQuant analyst Darkfost has highlighted a promising shift in Bitcoin’s retail demand metrics. Specifically, the 30-day demand change has climbed back into the neutral zone around 0%, recovering from a highly negative -21% seen late last year.
According to the insight shared by Darkfost, this is the first time since 2021 that retail demand has shown such a notable turnaround. Historically, periods of recovering retail demand have been linked to eventual price rebounds.
For example, in July 2024, retail demand reached a similar low point before beginning to recover. Although it took roughly three months for Bitcoin’s price to respond positively, the subsequent upward movement demonstrated the impact of growing retail interest.
Bitcoin retail Investor demand is brewing
“Notably, past instances of recovering retail demand have often coincided with upward price movements in the short-term.” – By @Darkfost_Coc
Full post ⤵️https://t.co/lvhC8JnvBD pic.twitter.com/YdBr6F78W7
— CryptoQuant.com (@cryptoquant_com) February 24, 2025
Darkfost noted that if this trend holds true this time, the current recovery in retail demand could lay the groundwork for future price gains—though such changes may take time to materialize.
Network Activity and Investor Sentiment on the Decline
Despite the positive signs from retail demand, overall network activity and investor sentiment tell a more cautious story. Darkfost in a separate post revealed a downward trend in the number of active Bitcoin wallets and transactions used for deposits and withdrawals.
The accumulation of Bitcoin by spot ETFs has also slowed, with minor outflows suggesting a more hesitant investor base. Additionally, the number of unspent transaction outputs (UTXOs) is decreasing at a pace reminiscent of previous market corrections.
Although this alone does not confirm a market cycle peak, it does raise questions about the underlying strength of current market participants.
Investor sentiment has also been weighed down by broader macroeconomic and geopolitical factors. Darkfost highlighted that while initial bullish sentiment was buoyed by optimism surrounding Trump’s election and the possibility of favorable US crypto regulations, no substantial policy changes or legislative actions have yet emerged.
Meanwhile, global trade tensions and risk-averse market behavior continue to dampen enthusiasm. With earlier bullish narratives already factored into Bitcoin’s price, the market will likely require new catalysts or improved conditions to regain upward momentum.
Featured image created with DALL-E, Chart from TradingView
Samuel Edyme
Meet Samuel Edyme, Nickname – HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.
Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.
Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.
When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)
Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.
In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.
Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think’s probably unfeasible, I’ve done already a hundredfold.”
PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
