Bitcoin is currently facing a decline in retail investor interest, with metrics revealing a plunge to a three-year low. According to figures from Google, search interest for Bitcoin has dipped by 57% since the cryptocurrency hit record highs in March.
CryptoQuant founder Ki Young Ju highlighted this downturn, stating that this metric is critical for predicting when a “real bull run” could occur. Ju calculated the average monthly change in demand for Bitcoin among retail investors, stating that it has dropped below negative 15% over the past month. He identified these figures by observing the 30-day change in total transfers of under $10,000.
The driving belief among many analysts and traders is that retail investor interest is pivotal for significant Bitcoin price hikes. CryptoQuant contributor Minkyu Woo underpinned this theory, explaining that periods of high retail interest usually fuel market excitement, which has not been present recently.
However, VanEck CEO Jan van Eck contradicted this in April when asserting that the majority of inflows into spot Bitcoin exchange-traded funds (ETF) in the United States were likely from retail investors. He stated, “I was surprised, but I don’t think it’s traditional investors yet. I still think 90% of the flows are retail.”
Currently, Bitcoin is grappling with maintaining a crucial support level, which traders believe is essential before it can ascend to its next price range. After a 27-day trading period below $65,000, Bitcoin only surpassed this mark briefly on July 17 before returning to $63,521, a value it hasn’t exceeded since.
Search interest in “Bitcoin” has also continued to plummet over the past three months, falling another 44% since the Bitcoin halving, according to Google data. This decline is often linked to retail investors’ general interest and typically spikes during significant Bitcoin events.