In essence, this on-chain metric tracks the activity of small wallets typically involved in transfers of small sizes. Specifically, this Retail Investor Demand indicator measures the percentage change in the cumulative volume of small transactions (worth $10,000 or less) over a 30-day period.
Considering that the Bitcoin price action has been fairly steady in this period, it is quite surprising that small-scale investors have refrained from entering the market. The market seems to be rather dominated by institutional investors — primarily through the spot Bitcoin exchange-traded funds.
Furthermore, Kesmeci mentioned that if the decline in retail demand continues, it could mean that the Bitcoin price is nearing a bottom. Hence, the flagship cryptocurrency could enjoy some bullish momentum and upward price movement over the coming weeks.
