Average Bitcoin demand among retail investors has dipped to its lowest point in five months, reaching levels last seen in January; it then surged 75% during the next two months.

Data released to X on June 10 by CryptoQuant author Axel Adler shows that the average monthly change in demand for Bitcoin among retail investors—those with up to $10,000 in transfer volume—has dropped to negative 17% over the last 30 days.

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Historical Context and Market Response

Adler said that “a similar previous drop to -18% in January saw Bitcoin rise from $40,000 to $70,000 — when it surged following spot Bitcoin exchange-traded funds (ETFs) were approved in the United States, propelling Bitcoin to its mid-March $73,679 all-time high.” “I also observed that this cohort responds fast to any change in the market,” Adler remarked.

Adler showed last month that demand fell by 31% over the 17 days before May 24, landing at negative 14.50%. Using the same metric, he highlighted growing interest in GameStop (GME) and Ether, presumably in response to initial spot Ether ETF clearance.

Influence of CPI on Bitcoin Demand

Analysts have previously proposed the change in Bitcoin demand is attributable to numerous variables, including the inflation-tracking U.S. Consumer Price Index (CPI).

As traditional savings and term deposits give less profitable returns as interest rates drop, declining the CPI might make perceived riskier assets like Bitcoin more enticing to investors.

READ: Bitcoin Buyer Interest Surges in the U.S. as Fed Signals Interest Rate Cuts

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To enable Bitcoin to hit new all-time highs, CPI must drop below 3.3% on June 12—the date the Bureau of Labor Statistics (BLS) will issue the data—10x Research chief researcher Markus Thielen informed in May.

Recent Market Movements

On June 11, Bitcoin fell below $69,000, the asset’s November 2021 all-time high—a mark traders keenly monitor. Based on CoinMarketCap, Bitcoin is trading at $67,350 at publishing, down 3.19% over the last 24 hours.

The abrupt drop destroyed $52.87 million worth of Bitcoin long holdings from yesterday. Based on CoinGlass figures, Open Interest (OI) stayed above the frequently watched $35 billion mark.