Much of Bitcoin’s recent rally has been fueled by institutional demand, but new data shows retail investors are finally stepping back in after a long lull.
According to a July 17 Glassnode report, the supply held by first-time Bitcoin (BTC) buyers has jumped by 2.86% over the past two weeks, going from 4.77 million BTC to 4.91 million. This marks about 140,000 BTC added by new holders, a strong sign that fresh capital is flowing into the market.
In past cycles, market upside was often fueled by retail hype. This current cycle, however, flipped the script, with ETF demand and institutional flows carrying Bitcoin through major milestones even as smaller investors stayed quiet. Analysts pointed to this as a sign of market maturity, saying Bitcoin’s rise is now anchored in fundamentals rather than hype.
Glassnode’s data now suggests that retail investors may be re-engaging, a trend echoed in exchange activity. A CryptoQuant analysis of Binance flows shows retail-sized deposits increasing while whale inflows have fallen by roughly $2 billion. That shift means much of the recent momentum is being driven by smaller players rather than large holders.
Echoing the sentiment, market analyst Axel Adler shared that the 30-day change in demand for small transfer volumes, typically transactions between $0 and $10,000, has turned positive after weeks in the red, reinforcing signs of fresh retail activity on-chain.
Off-chain signals are adding weight to the theory. crypto.news previously reported a major drop in global search interest for “Bitcoin,” dropping to its lowest point in years. However, recent Google Trends data reflects a slight recovery, indicating renewed retail curiosity.
But despite these signs, the broader structure remains tilted toward large players.
Institutional weight still dominates market
Wintermute’s H1 2025 OTC Market Report has highlighted the sharpest divide between institutional and retail behavior in nearly two years. The data shows big players doubling down on Bitcoin and Ethereum, while smaller investors have shifted attention elsewhere, creating the widest gap in market focus since 2023.
Major buyers hold around 67% of allocations in Bitcoin and Ethereum, while retail has cut its combined share to just 37%. OTC trading volumes also surged to 2.4 times faster than exchange trading in H1, as big players sought large, discreet trades off public order books.
Retail investors are said to be shifting their attention toward altcoins, suggesting that while interest in Bitcoin is returning, most of their capital may still flow elsewhere.
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