- After reviewing the data BinanceCryptoquant analysts concluded that small retail investors have stopped actively trading coins through the exchange.
- The reduction in their deposits has reached minimal values.
Network data analysis by Cryptoquant showsthat Bitcoin owners with balances of less than 1 BTC are becoming more inactive than ever. According to Binance, monthly BTC deposits from retail investors have now fallen to an average of 314 BTC, the lowest level on record.
Cryptoquant data
For comparison, at the peak of 2018, retail deposits reached almost 5400 BTC. Even during the 2021 bull market, this figure stood at 2600 BTC. Currently, we have 314 coins.
Even during the recent cryptocurrency bear market, retail investor transfers to Binance On average, they were 1800 BTC per month. At the first major peak in March 2024, they hovered around 1200 BTC.
While retail investors were depositing around 1000 BTC monthly in January 2024, this inflow has fallen by more than 70% in just two years. Small investors are either abandoning cryptocurrencies, switching to HODLing, or turning to indirect investments through financial products such as Bitcoin spot ETFs.
For years, retail investors played a major role in Bitcoin’s growth, particularly during the bull runs of 2017 and 2021. Today, the market is largely driven by institutional investors, long-term holders, and capital inflows through ETF.
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