Since the start of this cycle, one category of investors has been noticeably less active than in previous cycles. These are retail investors. Their activity steadily declined as the cycle progressed.

On this chart, they are represented by holders of less than 1 BTC, commonly referred to as shrimps. This group, historically very sensitive to price movements, remained relatively on the sidelines during a large part of the market’s advance.

The sharp decline seen in recent days marked a change in behavior. The sudden drop in Bitcoin’s price was associated by a visible increase in their activity, measured here through inflows to Binance.

This correction appears to have triggered a wave of panic among these small investors, who rushed to transfer their BTC to Binance, a highly accessible platform that concentrates a large share of this group’s activity.

On February 5, inflows from shrimps to Binance exceeded 1,000 BTC in a single day, while their monthly average was closer to 365 BTC.

Such a spike had not been seen since July 2025, when Bitcoin was still advancing toward new all time highs.

This comparison is notable because it shows that similar volumes can appear both during euphoric phases and during periods of stress, although driven by very different behaviours.

The start of this month has clearly put investors under pressure. Rising volatility increases psychological stress and encourages impulsive decisions that can lead to capitulation.

However, the market quickly showed signs of stabilization. After a brief move below $60,000, Bitcoin rebounded and is now trading again around $71,000.

This partial recovery has helped calm retail investors. Their flows to exchanges have gradually returned to their monthly average, leading to a meaningful reduction in selling pressure coming from this segment of the market.

Written by Darkfost