Retail investors in Bitcoin (BTC) are setting new records as a “structural decline” emerges in this bull market.
Key points:
Entities holding up to 1 BTC are sending historically low amounts to Binance daily.
The narrative of “structural decline” coincides with the rise of spot Bitcoin ETFs.
Whale positioning suggests a potential new bottom for BTC prices.
“Shrimp” Binance BTC inflows hit record lows
Data from the on-chain analytics platform CryptoQuant indicates that BTC inflows to Binance, the largest crypto exchange, plummeted in 2025.
Bitcoin retail investors—entities holding under 1 BTC ($90,000)—have largely exited the trading scene.
According to CryptoQuant, even when compared to the bear market of 2022, the activity of these “shrimp” investors is significantly diminished.
“The activity of shrimps, meaning small Bitcoin holders (<1 BTC), has declined to one of the lowest levels ever recorded,” contributor Darkfost stated in a QuickTake blog post on Monday.
In December 2022, daily inflows from shrimp to Binance reached approximately 2,675 BTC ($242 million), based on a 30-day simple moving average (SMA).
“Today, those inflows have dropped to just 411 BTC, marking one of the lowest levels ever recorded,” Darkfost added.
“It’s not just a pullback, it’s a structural decline.”
The apparent disinterest from retail investors has marked recent Bitcoin trends, even as prices surge to unprecedented heights.
Meanwhile, during the recent downturn, one indicator comparing retail investors and whales has remained optimistic.
The whale versus retail delta, which contrasts long positioning in both groups, hints at a potential BTC price bottom.
“The Whale vs. Retail Delta indicates that, for the first time in Bitcoin’s history, whales are heavily positioned in long trades compared to retail traders,” Joao Wedson, founder and CEO of the crypto analytics platform Alphractal, shared with X followers in late November.
“Historically, whenever these levels were this high, we saw local bottoms forming — but also significant liquidations.”
Bitcoin ETFs “clearly affect” retail dynamics
CryptoQuant has explained the retail decline in light of the emergence of more accessible Bitcoin investment options, particularly US spot Bitcoin exchange-traded funds (ETFs).
Related: Did BTC’s Santa rally kick off at $89K? 5 key points on Bitcoin this week
“ETFs offer an easy way to gain Bitcoin exposure without needing to manage private keys, wallet security, exchange accounts, or custody risks,” Darkfost noted.
“While ETFs aren’t the only factor, they contribute significantly to a shift in how retail engages in the market.”
As Cointelegraph has reported, November was a pivotal month for the ETFs, with BlackRock’s iShares Bitcoin Trust (IBIT) experiencing net outflows of $2.3 billion.
This article does not constitute investment advice or recommendations. All investments and trading carry risk, and readers should conduct their own research prior to making a decision.
This article does not constitute investment advice or recommendations. All investments and trading involve risk, and readers should conduct their own research before making a decision. While we aim to deliver accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be responsible for any loss or damage resulting from your reliance on this information.
