Data: The trading volume of small Bitcoin holders has dropped to a historical low

According to on-chain data, the inflow of small Bitcoin holders (holding <1 BTC) to Binance has dropped to a historic low. After the FTX panic in December 2022, this group still transferred about 2,675 Bitcoins, but it has now decreased to 411 Bitcoins, a decline of over 84%.

Historically, small holders are usually more active during bull markets, but in this cycle, despite the rise in Bitcoin, their activity on exchanges has continued to decline. Analysts believe that the launch of spot Bitcoin ETFs in early 2024 is a key factor, as the inflow from this group to Binance has decreased by over 60% since the ETF listing.

This may reflect a more mature attitude among retail investors, who tend to prefer long-term allocation through ETFs rather than chasing short-term fluctuations.