Small BTC Holders Vanish as Shrimp Inflows Collapse to All-Time Lows

Retail Bitcoin holders are sending less BTC to Binance than at any point in the exchange’s history, according to new data from CryptoQuant. Entities with up to 1 BTC — often called “shrimps” — were once a reliable source of on-exchange activity. That pattern has unraveled through 2025, even as Bitcoin trades near record levels.

CryptoQuant data shows that daily inflows from these small holders averaged around 2,675 BTC per day in December 2022 on Binance alone. As of this week, that figure has fallen to just 411 BTC on a 30-day moving average basis.

Contributor Darkfost described the shift plainly: “The activity of shrimps, meaning small Bitcoin holders (<1 BTC), has dropped to one of the lowest levels ever recorded.” He added, “It’s not a simple pullback, it’s a structural decline.”

Small-holder inflows have fallen even further than during the 2022 bear market, when prices were roughly a third of today’s levels. The drop comes as Bitcoin trades around $90,600, raising questions about how retail traders now prefer to gain exposure.

How Are Whales Positioning as Retail Activity Fades?

While small-holder flows dry up, larger Bitcoin holders are behaving differently. A long-to-short comparison between whales and retail traders — tracked as the Whale vs. Retail Delta — shows whales heavily tilted toward long positions. According to Alphractal founder Joao Wedson, these levels have not appeared before in Bitcoin’s history.

“Whale vs. Retail Delta shows that, for the first time in Bitcoin’s history, whales are this heavily positioned in longs compared to retail traders,” he told followers on X.

Historically, similar readings lined up with local BTC bottoms, though some periods also saw large long positions flushed out during sharp volatility. This contrast — retail withdrawal versus whale accumulation — has become one of the defining features of the current cycle. Despite the pullback of the past two months, whale behavior suggests that larger holders see value at current prices.

Why Are Retail Inflows Collapsing in a Bull Market?

CryptoQuant points to the growing presence of Bitcoin ETFs as a central factor. Spot ETFs offer a way to hold BTC exposure without managing wallets, private keys or exchange accounts. This has become attractive for retail investors who prefer simple access over hands-on custody.

“ETFs have provided a frictionless way to gain exposure to Bitcoin without dealing with private keys, wallet security, exchange accounts or the risk of mismanaging custody,” Darkfost wrote. He added that ETFs are not the only factor behind the decline but “clearly contribute to a profound change in how retail participates in the market.”

Even so, ETF flows have not been uniformly positive. November delivered a challenging stretch for the sector, with BlackRock’s iShares Bitcoin Trust (IBIT) recording $2.3 billion in net outflows. But despite the turbulence, ETFs remain the preferred entry point for many smaller holders, and Bitcoin spot market activity reflects that.

What Does This Shift Mean for Bitcoin’s Next Price Phase?

Retail retreat does not necessarily imply weakening demand — only that demand is moving elsewhere. Spot ETF inflows and brokerage-based exposure routes have replaced direct Binance deposits for many small holders. This reduces visible on-chain activity even when interest remains steady.

Whale behavior, meanwhile, often becomes more influential when retail participation cools. The current long-heavy posture among large holders may support a price floor, though whale concentration can also amplify market swings if positions unwind.

With Bitcoin near all-time highs and fund flows tilting toward institutional products, the market is entering territory where large holders, ETFs and structured products carry more influence than retail traders. Whether this dynamic stabilizes or sets up sharper moves depends on how whales behave in the months ahead — and whether retail ever returns to exchanges in meaningful numbers.