Bitcoin’s retail spending has recently dropped on a massive scale. As per the latest data from Glassnode, irrespective of the broader recovery in the crypto market, the retail spending of Bitcoin ($BTC) has significantly declined, raising concerns among the market participants. The popular blockchain data and analytics platform provided the details about this plunge in retail spending on social media.
Retail Investors Display Decreased Bitcoin Spending Despite Wider Market Recovery
Glassnode mentioned in its latest report that the dip in retail spending has triggered apprehension in the market. This development is surprisingly taking place at a time when the price of Bitcoin is reaching exclusive high levels. The respective scenario is much different from the former peaks. As opposed to the previous price hikes, the retail investors are currently showing less activity in the case of $BTC spending.
A prominent indicator in this respect deals with the wallets possessing less than even 0.1 $BTC. Hence, the spent volume of these wallets has seen a sheer slump. At the peak of 2024’s November, the retail $BTC investors were reportedly spending their tokens at a per-hour rate of nearly $20.6M. Nonetheless, during the current month, this figure has dipped by almost 48%.
Rising Market Volatility Decreases Retail Trading Activity
As a result, the respective figure is presently standing at $10.7M per hour. According to Glassnode, this decreased Bitcoin spending in the retail realm highlights the retail investors’ reluctance to participate in market activity. A possible cause behind this is the mounting volatility. However, whether the current trend continues or not will play a crucial role in determining the further moves of Bitcoin.
