Bitcoin markets are displaying a notable split between the activity of large holders, commonly known as whales, and retail investors as participants await the upcoming Federal Reserve policy meeting.
Whale and Retail Bitcoin Deposit Trends
Analyst Crypto Patel reported that Binance saw whale deposits of Bitcoin decline by 44% in June, while deposits from smaller investors dropped by 22%. Data from the exchange indicated that smaller investors deposited nearly double the amount of Bitcoin compared to whales in recent weeks, suggesting whales are holding their positions rather than selling ahead of the Federal Reserve’s decision. Bitcoin traded at $64,813.60 during this period.
Between January and July of 2026, Binance tracked changes in Bitcoin deposits over rolling 30-day periods, revealing insights into shifting market sentiment.
During the first six months of the year, regular user deposits remained in the $11–13 billion range, whereas whales deposited about $3–4 billion. In February, whale deposits surged to $8–9 billion as Bitcoin’s price dropped following significant selling pressure.
Following Bitcoin’s recovery in April, whale deposits decreased noticeably. There was a brief spike in deposits in early June, but this was followed by another decline from both whale and retail users alike.
| Period | Whale Deposits ($B) | Retail Deposits ($B) |
|---|---|---|
| January – June 2026 | 3–4 | 11–13 |
| February 2026 (during sell-off) | 8–9 | ~12 |
| April 2026 (price recovery) | Decrease | Stable |
| Early June 2026 | Spike | Spike |
| Mid to Late June 2026 | Decrease (-44%) | Decrease (-22%) |
ETF Outflows and Institutional Sentiment
Institutional sentiment appeared subdued last week. Farside Investors reported that US-based Bitcoin exchange-traded funds (ETFs) experienced $240 million in net outflows on Friday, following $225 million in outflows on Thursday. This ended a seven-day streak of positive inflows.
More than $500 million in inflows from the previous week were reversed, though BlackRock’s IBIT ETF still accounted for nearly $415 million in net inflows. Despite recent outflows, US Bitcoin ETFs closed the week with a modest overall net gain of about $34 million.
XYO co-founder Markus Levin commented that ETF selling was likely a temporary risk management move rather than panic-driven. Levin pointed to elevated geopolitical tensions, oil prices above $100 per barrel, and widespread expectations of a tighter Federal Reserve policy as reasons why institutions might be reducing exposure in the short term.
Levin anticipates that institutional demand will rebound if macroeconomic uncertainty eases. He highlighted the $65,000 price level as crucial, stating:
If Monday closes above it on volume, institutions are repositioning into the reset. If it cracks, they’re waiting for better macro certainty.
Levin also said that the outcome of the next Federal Reserve meeting will likely influence the direction of institutional participation. He remarked:
The Fed meeting on July 28-29 is the next important filter once inflows resume. Right now we’re just trading off geopolitical noise. Capital doesn’t move without knowing if rates actually come down.
Mini dictionary: Farside Investors, a financial data provider, tracks investment flows and performance of major crypto and traditional asset ETFs, offering timely analytics for market participants.
