On October 29, Bitcoin nearly reached a new all-time high, peaking at $73,562 before cooling down to $72,300. Despite this rally, search interest in Bitcoin remains low, scoring just 23 out of 100 compared to its peak in May 2021, according to Google Trends. This is notably lower than the interest in artificial intelligence, which has dominated search trends recently.
Crypto analyst Miles Deutscher pointed out that despite Bitcoin’s price nearing its all-time high, retail interest has remained almost non-existent. Historically, peaks in retail interest have propelled platforms like Coinbase into the top rankings of app stores. However, Coinbase currently sits at 308th in Apple’s App Store, though it did see a significant jump of 167 positions on October 28 and 29, indicating a slight uptick in attention.
Data from CryptoQuant suggests that while retail investors are slowly returning to the Bitcoin market, they have been overshadowed by larger institutional investors throughout 2024. Retail investor activity hit a low of $326 million in daily transfers on September 21, the lowest since 2020. CryptoQuant analysts noted that such reduced retail activity often precedes major price rallies, as retail investors tend to chase upward price movements.
Institutional demand for Bitcoin has doubled compared to retail demand over the past year, driven significantly by the launch of U.S. spot Bitcoin exchange-traded funds (ETFs), which have garnered over $22.7 billion in net inflows since January.
Despite the lack of retail interest, Bitcoin’s price is buoyed by strong ETF inflows, positive market sentiment, and external factors like the Iran-Israel conflict and the upcoming U.S. presidential election. Donald Trump’s support for digital assets and his proposal to make the U.S. the crypto capital have linked Bitcoin to his campaign, whereas Vice President Kamala Harris supports a regulatory framework for digital assets. This has created a volatile environment ahead of Election Day on November 5.
Major cryptocurrencies like Ethereum, Solana, BNB, and Dogecoin have also seen significant gains. Analysts predict Bitcoin could reach $80,000 by the end of November, regardless of the election outcome. Market analyst Tony Sycamore noted that Bitcoin needs to stay consistently above $70,000 to build confidence in surpassing its previous record.
As Bitcoin nears a new all-time high, the muted interest from retail investors contrasts sharply with the robust participation of institutional players. While historical patterns suggest that retail investors may eventually follow the upward trend, the current rally is driven by institutional inflows, market sentiment, and significant geopolitical and economic events. The upcoming U.S. presidential election and external factors will continue to shape Bitcoin’s trajectory in the near term.
