Following Bitcoin‘s latest price surge, smaller investors appear to be pulling back, indicating wavering momentum in the cryptocurrency’s trajectory. Despite Bitcoin’s value stabilizing around $83,000, market observers caution that a trend reversal has not yet been confirmed. Meanwhile, the spotlight turns to Strive, a U.S.-based institutional Bitcoin treasury, which has made significant acquisitions worth approximately $491 million.
Retail Investor Demand Declines
According to data analyzed by crypto expert Darkfost, the 30-day change in retail investor demand, specifically transactions ranging from $0 to $10,000, dropped significantly during Bitcoin’s price upswing — plummeting from over 17% to minus 3.5%.
Darkfost interprets this trend as a reflection of retail investors pursuing short-term trades at current elevated price levels, potentially influencing Bitcoin’s short-term market volatility.
CryptoQuant analyst Axel Adler Jr. reports Bitcoin’s price rose from approximately $76,000 to $87,000 between September 17 and 27. This increase caused the percentage of Bitcoin’s supply in profit to rise from 65% to 73.8%. However, by September 29, this figure slid back to around 72%, falling below the long-term average of 76%.
During the same timeframe, the Bitcoin Impulse Performance indicator revealed a loss in momentum. By the end of September, both fast and slow lines of the indicator coincided at zero, with the Bitcoin price hovering near $83,000.
Strive’s Major Bitcoin Acquisition
Contrasting the decline in individual investor interest, institutional player Strive has intensified its Bitcoin purchases. Data from Lookonchain indicates that the company acquired a total of 6,106 Bitcoins between August 24 and September 25, investing an average of $80,375 per Bitcoin, totaling $490.77 million.
BitcoinTreasuries data reveals that as of September 30, Strive holds 27,462 Bitcoins, ranking it fifth among publicly traded companies globally in terms of Bitcoin holdings. To finance these acquisitions, Strive utilized various methods, including the issuance of perpetual preferred shares known as SATA.
While Strive’s strategic buying highlights institutional dynamics, the dwindling retail demand and reset momentum spotlight the vulnerabilities in Bitcoin’s recent rise. According to Adler, for a more definitive weakening signal, momentum must shift into the negative territory, and the proportion of supply in profit should further decline.
