•  Retail inflows to Binance dropped 80% from 450 BTC to 92 BTC since early 2023. 
• Spot ETF introduction in 2024 further reduced small investor participation in Bitcoin. 
• CryptoQuant data shows retail holders under 0.1 BTC remain largely absent this cycle.

Retail Bitcoin inflows into Binance have fallen by more than 80% since early 2023, marking a major shift in investor participation. Data from CryptoQuant shows that wallet addresses holding less than 0.1 BTC — often referred to as “shrimps” — have drastically reduced deposits. The metric has dropped from 450 BTC to just 92 BTC per day, illustrating what analysts describe as a “brutal collapse in participation.” 

Retail Investors, the biggest absentees of this Cycle.

When we talk about retail investors, we are essentially referring to users who hold small amounts of BTC. This category, often called shrimps, represents investors holding less than 0.1 BTC.

📊 This chart illustrates the… pic.twitter.com/9yFn1Cni0l

— Darkfost (@Darkfost_Coc) November 2, 2025

According to the chart shared by on-chain analyst Darkfost, Binance remains the primary gateway for retail users. However, the exchange’s inflow data paints a concerning picture for this market segment. Retail Bitcoin holders, once a core driver of liquidity and trading activity, are contributing less to daily inflows compared to previous cycles.

The data suggests that retail engagement peaked during prior bull runs but has since declined sharply through the current phase. Despite Bitcoin’s price stability above $60,000, smaller holders are sending less BTC to exchanges, reducing their influence over short-term market movements.

Spot ETFs and Market Shifts Redefine Retail Activity

The approval of spot Bitcoin ETFs in January 2024 coincided with a visible decline in retail inflows. CryptoQuant data indicates that before the ETF launch, smaller addresses contributed about 450 BTC daily to Binance. Following the ETF debut, inflows fell to an average of 92 BTC per day, a fivefold decrease.

This trend highlights a significant behavioral shift in the retail landscape. Traditional investment vehicles like ETFs appear to have absorbed much of the capital that once flowed through exchanges. Many smaller investors now prefer indirect exposure through institutional-grade products rather than direct spot holdings.

The 90-day moving average of inflows from these small addresses reflects this evolution. The consistent downward trajectory since early 2023 underscores how retail sentiment has diverged from earlier bullish phases. Market observers believe this change may signal growing dependence on institutional instruments for Bitcoin exposure.

A Cycle Defined by Retail Absence

The decline in shrimp inflows stands out as one of the defining patterns of the current cycle. Retail investors, who once helped fuel explosive bull runs, have largely stepped aside. The data suggests that despite higher prices, grassroots accumulation has weakened substantially.

From 552 BTC inflows per day during the post-bear recovery in 2023 to the current 92 BTC, retail presence has thinned dramatically. This contraction in exchange activity implies that large holders and institutions now dominate liquidity and market influence.
The sustained drop since ETF approval highlights how different this cycle has become compared to previous ones.

The question now arises: Can retail investors return to influence the next Bitcoin rally, or has the market permanently evolved toward institutions? The ongoing decline in retail exchange inflows continues to shape the structure of Bitcoin’s maturing ecosystem.