Retail investors are piling back into %Cryptocurrencies, sending prices of some digital tokens to their highest levels in nearly six months.
Smaller individual investors, often referred to as “shrimps,” have bought 35,000 %Bitcoin (CRYPTO: $BTC) since the beginning of September as confidence rises among the retail crowd.
Analysts say the retail investor activity is healthy for the market and a bullish sign for cryptocurrencies as we enter the fourth and final quarter of the year.
The increased buying of crypto among individuals comes after the U.S. Federal Reserve lowered interest rates by 50-basis points and signalled more cuts are likely in coming months.
Lower interest rates are good for businesses and markets, and they have led investors to feel more confident putting money to work in riskier assets such as crypto.
The recent accumulation of Bitcoin has been particularly strong, surpassing the average amount of 13,500 BTC purchased in a typical month this year.
Bitcoin is now being bought by retail investors at the fastest pace since the end of 2023, according to market data.
Another positive development for Bitcoin is substantial outflows of the largest cryptocurrency from exchanges. Around 40,000 BTC have left exchanges in the last 30 days.
When crypto is withdrawn from an exchange, it can indicate that holders plan to keep it off the market, reducing selling pressure and pushing prices higher.
The fourth quarter of the year is typically the strongest for both crypto and stocks. Bitcoin is currently trading at $64,000 U.S., up 45% on the year.