Retail investors in Bitcoin (BTC) are reaching new milestones as a trend of “structural decline” unfolds within this bull market.
Key points:
Bitcoin holders with up to 1 BTC are transferring less to Binance on a daily basis than ever before.
The narrative of “structural decline” emerges during the rise of spot Bitcoin ETFs.
Whale trading patterns suggest a potential new bottom for BTC prices.
Binance BTC inflows from “shrimps” hit historic lows
Data from the on-chain analytics source CryptoQuant indicates a significant drop in BTC inflows to Binance, the largest cryptocurrency exchange, in 2025.
Retail investors — those holding up to 1 BTC ($90,000) — have largely stepped back from trading activities.
CryptoQuant reports that even compared to the bear market of 2022, the trading volume from these “shrimp” investors has drastically diminished.
“The activity of shrimps, defined as small Bitcoin holders (<1 BTC), has fallen to one of the lowest levels ever seen,” contributor Darkfost noted in a QuickTake blog post on Monday.
In December 2022, daily inflows from shrimps to Binance reached approximately 2,675 BTC ($242 million) based on a 30-day simple moving average (SMA).
“Currently, those inflows have plummeted to just 411 BTC, marking one of the lowest figures ever recorded,” Darkfost added.
“It’s not merely a pullback; it’s a structural decline.”
The recent disinterest from retail investors has been a defining feature of Bitcoin’s history, even as prices soar to unprecedented heights.
During the recent market correction over the past two months, one indicator contrasting retail and whale investors has remained optimistic.
The whale versus retail delta, which highlights long positions between the two groups, is hinting at a potential bottom for BTC prices.
“The Whale vs. Retail Delta shows that, for the first time in Bitcoin’s history, whales are positioned more heavily in longs compared to retail traders,” Joao Wedson, founder and CEO of crypto analytics platform Alphractal, informed his X followers in late November.
“Historically, when these levels have been this high, we witnessed local bottoms forming — alongside significant liquidation of large positions.”
Bitcoin ETFs “clearly influence” retail behavior
CryptoQuant elaborated on the retail decline in light of new investment vehicles, particularly the US spot Bitcoin exchange-traded funds (ETFs).
Related: Did BTC’s Santa rally begin at $89K? 5 things to know in Bitcoin this week
“ETFs offer a seamless way to gain exposure to Bitcoin without the complexities of private keys, wallet security, exchange accounts, or the risks associated with custody management,” Darkfost remarked.
“While ETFs are not the sole factor, they undeniably contribute to a significant transformation in retail market participation.”
As reported by Cointelegraph, November proved to be a challenging month for ETFs, particularly BlackRock’s iShares Bitcoin Trust (IBIT), which experienced net outflows of $2.3 billion.
This article does not offer investment advice or recommendations. Every investment and trading activity carries risks, and readers should conduct their own research before making decisions.
This article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers are encouraged to conduct their own research. While we aim to offer accurate and timely information, Cointelegraph does not guarantee the completeness, accuracy, or reliability of any information presented. This article may include forward-looking statements subject to risks and uncertainties. Cointelegraph will not be responsible for any loss or damage resulting from reliance on this information.
