Bitcoin Rises as Retail Investors Sell: Who Is Carrying the Rally?

As the Bitcoin price recovers, the negative outlook in spot demand is deepening; CryptoQuant associates this pattern with selling by retail investors.

The recovery in Bitcoin price is not finding a similarly strong response in spot demand, which reflects the direct buy-sell balance. While small investors continue to sell, the Bitcoin holdings of large investors are increasing.

As the negative outlook in spot demand deepens further, futures demand is also slightly declining. Futures demand is carrying the price recovery; however, this demand is also weakening slightly. This picture indicates that the rally in Bitcoin is not supported by equal buying across all investor groups. In the 30-day chart, spot demand bars remain in negative territory, while futures demand is seen to have declined in the final segment.

Retail investors are selling during the rally

The source’s analysis reports that retail investors’ Bitcoin holdings declined as the price recovered. Small investors continue selling despite the rising price. In contrast, large investors’ holdings increased during the same period.

The second chart shows that retail investor holdings dropped significantly in the final segment, while large investor holdings maintained their upward trend. This divergence supports the assessment that retail selling lies at the root of negative spot demand.

It is assessed that the rally may become difficult to sustain without spot demand. If the negative outlook continues, it is stated that Bitcoin’s upward trend could be disrupted.