While much of Bitcoin's recent gatherings are supported by institutional demand, new data shows that retail investors have finally returned after a long lull.
According to a GlassNode report on July 17th, supply held by first-time Bitcoin (BTC) buyers has increased by 2.86% over the past two weeks, from 4.77 million btc to 4.91 million. This marks approximately 140,000 BTC added by the new owner. This is a strong indication that fresh capital is flowing into the market.
Over the past two weeks, supply held by first-time $BTC buyers has increased by +2.86%, up from 4.77m to 4.91m #BTC. Fresh Capital continues to enter the market and supports the latest price breakouts. pic.twitter.com/w95hsamahi
– GlassNode (@GlassNode) July 17, 2025
In past cycles, market benefits have often been driven by retail hype. However, this current cycle has overturned the script, with ETF demand and institutional flows still existed by carrying Bitcoin through big milestones, even if small investors were quiet. Analysts pointed this to a sign of market maturity, saying that Bitcoin's rise is locked into fundamentals rather than hype.
GlassNode data suggests that retail investors may be re-engaged. This is a trend reflected in exchange activities. A cryptographic analysis of Binance Flow shows that while whale influx has dropped by about $2 billion, retail-sized deposits are on the rise. This shift means that much of the momentum these days is driven by smaller players rather than large holders.
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Reflecting sentiment, market analyst Axel Adler shared that a 30-day change in demand for small transfer volumes (usually between $0 and $10,000) tested positive for reinforcement of fresh retail activity that has been chained up after a few weeks.
Off-chain signals add weight to the theory. Crypto.News previously reported a significant drop in global search interest for “Bitcoin” and fell to the lowest point in years. However, recent Google Trends data reflects a slight recovery, indicating a new retail curiosity.
However, despite these signs, the wider structure remains leaning towards larger players.
Institutional weight still dominates the market
WinterMute's H1 2025 OTC Market Report highlights the sharpest disparities in institutional and retail behavior in nearly two years. The data shows that bit players are doubling Bitcoin and Ethereum, but fewer investors are attracting attention elsewhere, creating the widest gap, focusing on the market since 2023.
While major buyers hold about 67% of their Bitcoin and Ethereum allocations, retailers have reduced their total share to just 37%. OTC trading volumes skyrocketed 2.4 times faster than exchange trading in H1 as large players wanted large, modest trades.
Retail investors suggest that while interest in Bitcoin returns, most of their capital may still flow elsewhere.
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