Bitcoin’s retail investor activity has reached a 52-month peak, signaling a resurgence of interest in the cryptocurrency market, according to data from CryptoQuant. This renewed enthusiasm is driven by a combination of factors, including surging altcoin markets, increased mainstream attention, and the recent all-time high price achieved by Bitcoin earlier this week.
CryptoQuant analyst J.A. Maartunn noted the clear signs of retail traders’ return, citing the surge in Dogecoin, high funding rates, and a spike in Google searches for “Bitcoin.” “It’s impossible to ignore that retail trading is fully back,” Maartunn stated. This observation is supported by CryptoQuant’s 30-day moving average of retail investor demand change, which confirms the significant uptick in activity.
Furthermore, the data reveals that this renewed retail interest is not limited to Bitcoin. “Retail demand is also shifting towards other coins further down the risk curve,” Maartunn explained, pointing to data highlighting the top-performing altcoins over the past week. “Our data shows a retail demand targeting a mix of memecoins, DeFi projects, and major altcoins, and these categories appear to be the most popular among retail participants,” he added.
While Bitcoin experienced a slight pullback after reaching a new all-time high of over $93,500 this week, the overall market momentum remains strong. However, analysts at Ryze Labs caution that the sharp rise in funding rates, driven by the altcoin market enthusiasm, could lead to increased volatility. “Funding rates have surged, signaling a return of aggressive leverage, with many altcoin long positions incurring over 50% APY in funding,” Ryze Labs analysts warned.
