Looking at the data, who is really driving Bitcoin's recent big rebound?

Is it retail investors? High net worth individuals? Or institutional investors?

One thing to understand here is that Bitcoin is largely a huge retail market, so retail will always be a force to consider . However, while retail trading has played a role, this rally seems to have been driven by high net worth individuals, such as some, which we can confirm by using on-chain data.

Bitcoin’s average transfer volume measures exactly what it says it does, the average of on-chain transfers.

Lately, this has been surging, pointing to a growing number of participants, and since this is not just the total value transferred on-chain, this metric gives you an idea of ​​the type of investors, i.e. high net worth individuals.

The chart shows that activity from these users has increased rapidly during the recent market surge.

The attached chart highlights the new investors entering the market, adding this information to the top shows that these investors are brand new, which means there is new money entering the market .

Both indicators suggest that the recent rally was no fluke, as it was supported by trading volume and backed by real on-chain data.

And when we consider the reduced share of gold ETFs and the increased share of Grayscale ETFs, it all seems to fit in.

Interestingly, the same observation was made in a recent report from JPMorgan, which posited that people might leave gold ETFs for Bitcoin.

JPMorgan said, “This comparison (gold and bitcoin) provides support for the idea that some investors (such as family offices) who previously invested in gold ETFs may be looking to bitcoin as an alternative to gold. ”