• Retail Bitcoin inflows to Binance have collapsed to just 411 BTC, marking one of the lowest levels ever recorded and signaling a deep structural decline in small-holder activity.
• Shrimp inflows have fallen more than 60% since spot Bitcoin ETFs launched in early 2024, dropping from 1,056 BTC to 411 BTC.
• Spot ETFs appear to be redirecting liquidity away from centralized exchanges, shifting market participation from retail traders to institutional vehicles.

According to the new data shared by CryptoQuant analyst @Darkfost_Coc, retail Bitcoin (BTC) market participants have reached one of the lowest levels in years. The metrics underline an extreme decline in small-holder “shrimp” BTC inflows to Binance as a signal that the retail demand weakens despite increased institutional activity.

Retail Activity Hits Historic Lows

New data from CryptoQuant indicates that inflows of Bitcoin from “shrimp” wallet addresses holding less than 1 BTC have collapsed to levels not seen since post-FTX panic.

Even in December 2022, during the peak of retail fear, small holders were still sending around 2,675 BTC to Binance. That number has today dropped to just 411 BTC, among the lowest inflow levels ever recorded. Analysts emphasize that what is taking place is not a temporary correction but a structural fall in retail market participation.

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Spot Bitcoin ETFs Shift Market Dynamics

This is partly due to the surge in spot Bitcoin ETFs that emerged at the beginning of 2024, with retail traders pulling away from exchanges like Binance in favor of getting exposure via traditional platforms offering the new ETFs.

Data highlights a sharp decline in shrimp inflows to Binance from 1,056 BTC to 411 BTC, representing a steep 60% decline since the ETFs launched. According to on-chain analysts, retail investors are flowing into passive ETF allocations, reducing direct exchange-level activity.

The collapse in small inflows underlines a significant change in behavior amongst retail participants. While institutions continue to accumulate, via ETFs, small holders are becoming less active on exchanges, reflecting a cautious retail environment despite Bitcoin trading near highs. As to whether this retail decline signals exhaustion or presents one last great accumulation opportunity, that will be a key question for the market going into 2025.

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