- Bitcoin ETF AUM’s grow to $50 billion, indicating high interest.
- Retail investors begin to indulge in profit taking
Bitcoin’s [BTC] price has picked up yet again after slowing down in early march. The surge in price, in part could be attributed to rising retail interest in BTC.
Retail investors pour in
One indicator of this was the fact that assets under management (AUM) for Bitcoin spot exchange-traded funds (ETFs) surpassed $50 billion recently.
This milestone reflects the growing interest and investment in Bitcoin through the ETF market, highlighting the increasing mainstream adoption of the cryptocurrency.
The significant AUM also underscores the substantial capital inflows into Bitcoin spot ETFs, signaling a broader acceptance of digital assets within traditional financial instruments.
Source: X
Here for a good time, not a long time?
Yet, retail investors have also been observed engaging in profit-taking.
According to CryptoQuant analyst G a a h, the SOPR STH, a metric utilized since April 2023, indicates that short-term holders (STH), often associated with retail investors, haven’t reached the mid-range marked in yellow on the chart. This signals the return of retail participants to the market, capitalizing on profit opportunities as the price of Bitcoin ascends.
It’s crucial to note that short-term holders are typically considered retail, as they engage in the market for speculative purposes, anticipating price appreciation during a trend.
The SOPR STH specifically evaluates Unspent Transaction Outputs (UTXOs) with a lifespan of 1 hour to 155 days on-chain, analyzing profit/loss within the window between creation and output spent.
As the realization flow of this category of investors increases, it brings forth the risk of a local top formation. This is due to these traders providing liquidity, allowing larger players to fulfill their orders in the market.
Despite these observations, there is still a considerable gap to reach the Extreme Greed range.
Historically, the Bitcoin price has visited this range multiple times during previous bullish cycles, indicating that there may be further potential for upward movement despite the ongoing profit-taking among retail investors.
Read Bitcoin’s [BTC] Price Prediction 2024-2025
These factors could hinder BTC’s rally in the future.
At press time, BTC was trading at $67,623.50 and its price had grown by 2.61% in the last 24 hours.
Source: Santiment
