Bitcoin purchases by everyday people are at their lowest level since 2017. Looking at the blockchain data shows us how investors are changing their habits.
More and more individual investors are moving away from Bitcoin. Recent data from on-chain analyst Darkfost shows that the level of participation from these investors hasn’t been this low since 2017.
Currently, the average daily amount of Bitcoin entering Binance from smaller investors (those sending under 1 BTC) is only 332 BTC. This is the lowest it’s been since Binance first started.
Several forces are reshaping how everyday investors engage with Bitcoin.
Read also:
Bitcoin Death Cross Flashes: Is Final Capitulation Near?
Why Retail Bitcoin Investors Are Leaving Exchanges
Increasingly, more individual Bitcoin owners are choosing to leave their coins on exchanges instead of transferring them directly on the Bitcoin network. According to Darkfost, this is happening because the growing number of available platforms has made buying and accessing Bitcoin simpler.
Despite the highly publicized failure of FTX, many investors are still choosing to let third-party platforms handle their money.
In my research, I’ve found evidence suggesting that Bitcoin ownership is currently more concentrated than it has been at any other time since its creation. Darkfost’s analysis supports this conclusion.
This shift matters because on-chain inflows directly reflect retail movement.
If investors simply hold onto their cryptocurrencies on exchanges without buying or selling, the reported amount of money coming in decreases. While on-chain data doesn’t show the whole picture, the declining trend is noticeable.
Retail engagement, measured this way, is at a historic low.
Retail activity hit an 9-year low.
Retail activity has reached a record low. Retail investors are clearly absent from the market.
This chart focuses on smaller transactions – specifically, those under 1 Bitcoin – happening on the Binance exchange. Binance continues to be the most popular platform for these types of activities.
— Darkfost (@Darkfost_Coc)
Bitcoin ETFs Are Changing How Retail Investors Get Exposure
As a researcher tracking cryptocurrency trends, I’ve observed a clear impact from the January 2024 launch of spot Bitcoin ETFs. Specifically, we saw an average of around 1,000 Bitcoin flowing in from retail investors to Binance each month that January.
Now, that number is about a third of what it used to be. ETFs allow investors to gain price exposure to Bitcoin without actually transferring any Bitcoin on the blockchain.
Darkfost notes that many individual investors view Exchange Traded Funds (ETFs) as safer and more closely overseen than other investments.
Now, investors who want to profit from Bitcoin’s price changes can easily use ETFs. This has led to fewer individual investors buying and selling Bitcoin directly.
The convenience factor is real, and the data reflects it.
Read more:
Riot Sells 3,778 BTC in Q1 as Other Bitcoin Miners Dump 15,000 More
Broader Market Shifts and Long-Term Bitcoin Accumulation
From what I’m seeing, it’s not like all retail investors are simply switching to ETFs. Some seem to be taking their money out of the market altogether, or at least moving it into different types of investments.
Darkfost notes that some investors have been shifting their money into stocks and commodities, both of which have performed well lately.
Bitcoin is competing with other assets for attention, and retail money is spreading out.
Another thing to consider is that many people who’ve held Bitcoin for a long time have continued to buy more of it.
As customers increase their investments, they move into higher spending brackets and are no longer counted as small investors. This understandably lowers the number of new customers at the lower end of the investment scale. Darkfost acknowledges this is a minor factor, but it’s still worth considering.
According to CoinGlass, Bitcoin is currently trading around $67,019, which is a 1.35% increase over the last 24 hours.
whale orderbook update
Price is boxed in.
Looking at the order book, I’m seeing significant ask volume clustered around 67.5k and then again between 67.95k and 68.05k. On the bid side, there’s activity between 65.6k and 65.8k, and a stronger support level appears to be forming around 64.9k.
Not trend , just chop.
Bullish if the sell walls get eaten.
Bearish if the lower bids get pulled or absorbed.
Until then,…
— CoinGlass (@coinglass_com)
Large investors (often called ‘whales’) are still heavily influencing the price, with significant selling pressure around $67,500 and $68,000. While individual investors seem less active right now, the overall market suggests that this asset is becoming more established, and trading patterns are different than they were in the beginning.
Read More
- United Airlines can now kick passengers off flights and ban them for not using headphones
- Crimson Desert: Disconnected Truth Puzzle Guide
- How to Get to the Undercoast in Esoteric Ebb
- All Golden Ball Locations in Yakuza Kiwami 3 & Dark Ties
- All 9 Coalition Heroes In Invincible Season 4 & Their Powers
- Katanire’s Yae Miko Cosplay: Genshin Impact Masterpiece
- All Itzaland Animal Locations in Infinity Nikki
- Warframe Voruna Prime access begins on April 8 for all platforms, new deluxe cosmetic Warframe skins revealed
- HBO’s Harry Potter Is Already Breaking My Heart
- Zendaya’s 4 Big 2026 Movies Could Beat Brie Larson’s Box 2019 Office Record
2026-04-03 15:55