Retail Investors Still Absent as Bitcoin Volume Trails 1-Year Average

Bitcoin hit new all-time highs and continues to draw global attention. Yet, the retail crowd appears to be missing. According to recent CryptoQuant data shared on May 26 via Odaily, retail investors remain largely absent from the current rally. This trend stands in sharp contrast to past bull runs in 2017 and 2021. During those cycles, frequent traders and small wallet holders fueled strong market momentum. Today, their participation remains low. Recent figures highlight that Bitcoin volume from frequent retail traders is below the 1-year average. The number of “shrimp” wallets holding less than 1 BTC has sharply declined since 2021. This development suggests weak retail engagement and indicates that the current rally may be driven by institutions rather than mass hype.

Retail Activity Falls Below Historical Trends

Data shows that retail investors are not showing strong interest in the ongoing Bitcoin rally. The retail wallets’ 30-day average trading volume is significantly below the yearly average. This reflects small traders’ fear, even though the market is filled with positive price momentum. Back in 2021, the number of shrimp addresses stood at 590,000. At the April 2024 all-time high, the number dropped to 490,000. Today, the figure is around 260,000. This is the lowest level recorded since the 2021 peak.

Source: CryptoQuant.com X Post on May 26, 2025.

Although some wallet holders may have moved to larger categories due to accumulation, CryptoQuant notes that this accounts for only a small share. The broader pattern points to subdued activity from new or existing small investors. Such weak retail presence in a bull market is rare and raises questions about current sentiment.

Institutional Interest May Be Driving the Rally

The absence of retail investors may signal that the rally is institutionally led. Unlike the sharp price spikes seen in retail-fueled surges, this cycle has shown more gradual gains. Platforms such as Binance Square and CryptoQuant Quicktake confirm that retail enthusiasm remains muted. The data suggests that mass retail entry has not yet occurred. Analysts believe that large institutions may now be playing a stronger role in price movement. Retail investors were major drivers in past bull runs. Their surge in participation often marked the final leg of those cycles. The current divergence shows that the ongoing rally may follow a different path. This may result in a more stable growth pattern instead of a volatile price spike.

Retail Confidence Still Recovering From Bear Market

Many small investors appear hesitant after the harsh downturn of 2022 and early 2023. That period saw massive losses across crypto markets. The scars of that time may still influence current behaviour. Low retail confidence may also reflect broader economic concerns. Rising inflation, interest rates, and global uncertainties continue to shape investor sentiment. Without clear signs of renewed confidence, retail engagement may remain low in the near term. Market watchers suggest monitoring retail inflows, Google Trends, and social media activity. Exchange volume from smaller wallets also offers insight into retail movement. These indicators will show whether retail investors start returning to the market.

What to Watch Next?

If retail investors re-enter, Bitcoin volume could spike and signal the next phase of the rally. Current low engagement levels mean more upside remains if retail joins in. A delayed retail entry could extend the bull cycle by spreading demand over a longer period. It may also help avoid extreme price corrections seen in earlier rallies. Key indicators include wallet growth in the shrimp category, Google search interest, and activity on major retail platforms. Tracking sentiment and on-chain movements will remain vital. As things stand, the crypto market appears stable yet under-engaged by retail players. Should retail confidence return, Bitcoin’s upward trajectory could gain further strength.