Retail Traders Retreat: Binance Sees Deposits Drop 80%

Data from CryptoQuant shows that daily Bitcoin deposits from wallets under 0.1 BTC have fallen from 552 BTC to just 92 BTC.

New data has revealed a sharp decline in activity from small-scale Bitcoin (BTC) investors on major trading platforms, with Binance experiencing an 80% drop in daily deposits from this group since the start of 2023.

Some market observers see the shift as a fundamental change in market structure, with traditional private participation being replaced by institutional instruments and long-term investment strategies.

The great shopping retreat

According to an analysis shared by CryptoQuant analyst Darkfost, the flow of Bitcoin into Binance from addresses holding less than 0.1 BTC, often referred to as “shrimp,” fallen off a cliff.

The 90-day moving average of these small holders’ daily deposits has fallen more than five times, from around 552 BTC in early 2023 to just 92 BTC today. This trend gained even more speed after spot ETFs began trading in January 2024. Before their launch, the daily average was around 450 BTC, meaning the drop to 92 BTC represents a steep and sustained decline.

Darkfost identified three major factors that caused this collapse. First, he claimed that a portion of retail investors now prefer Bitcoin exposure through ETFs, bypassing the need to use an exchange like Binance altogether. Second, small holders of Bitcoin choose to hold it in their wallets rather than sell it on an exchange.

Finally, he suggested that the data no longer includes consistent accumulators who have simply expanded their businesses beyond the “shrimp” category. The result is a market increasingly driven by new big investors, corporate government bonds and steadfast accumulators, making this cycle markedly different from those in the past.

A market in search of direction

The changing retail landscape comes at a time when the broader market is showing signs of fatigue. At the time of writing, Bitcoin was at $107,133, down 3.2% in the past 24 hours and 6.8% in the past week.

You might also like:

It follows a tough October, with data from CoinGecko showing assets down more than 12% last month, helping to break a long streak of positive performance in October.

Other data support a cautious mood. A report from CryptoQuant noted that demand for BTC and ETH exposure among US investors has declined, with Bitcoin ETFs seeing net outflows of over 280 BTC and inflows to their Ethereum counterparts falling to near zero. Meanwhile, momentum indicators on Binance, such as the CVD, have done just that withdrawn versus October highs, indicating a possible loss of upside.

Traders are now keeping an eye on key support levels; if selling pressure continues, the zone will be between $97,000 and $98,000 considered the next big test. And while the long-term fundamentals are still intact, the market appears to be taking a breather, with retail investors seemingly becoming more cautious.