Retail investor activity in Bitcoin has seen a notable uptick in October, according to analysts from CryptoQuant. The firm reported a 13% increase in retail demand over the past month, signaling a resurgence after a lull in activity from June to late September.

This renewed interest is approaching levels observed prior to Bitcoin's all-time high in March 2024.

Julio Moreno, Head of Research at CryptoQuant, noted that while retail investors are becoming more active, institutional investment has also risen steadily throughout the year. Moreno highlighted the contrast with Q1 2024, which was predominantly driven by larger investors.

He remarked that the current dynamics mirror previous Bitcoin market cycles, particularly referencing 2017 when retail accumulation surged after Bitcoin surpassed its previous all-time high.

To assess retail demand, CryptoQuant analyzes several indicators, including the total amount of Bitcoin held in wallets containing less than one Bitcoin. This number has grown from 1.734 million BTC in mid-March to its current 1.752 million BTC. Additionally, on-chain transaction volumes under $10,000 offer insights into the sentiments of smaller investors.

Alongside this retail activity, institutional interest has also been reflected in the growing inflows into spot Bitcoin exchange-traded funds (ETFs). As of mid-October, cumulative net inflows surpassed $21 billion.

However, this trend reversed recently, with a reported outflow of $79.09 million on Tuesday, primarily driven by Ark and 21Shares’ ARKB fund.

Bitfinex analysts cautioned that while ETF inflows can enhance confidence in Bitcoin as an investment, previous attempts for Bitcoin to break the $70,000 barrier have not been successful, even during periods of significant inflows.

The inherent volatility of Bitcoin prices suggests that fluctuations may continue, despite recent trends in retail and institutional demand.