Retail Traders Fail to Bet as Trump Calls for Ceasefire

In mid-June 2025, the crypto market, especially Bitcoin (BTC), recorded a surge in activity from small investors.

According to CryptoQuant data, on June 15, BTC inflows from retail investors to Binance surged above 25%, indicating high trading interest amidst the tense geopolitical situation.

Based on information we quoted from Beincrypto media, a similar increase was seen on June 19 with a figure reaching 19%, reflecting the active involvement of small investors during the volatile market.

Small Investors’ Falling Bets Soar

Amid the escalating geopolitical tensions, many small investors chose to bet on a decline in the price of Bitcoin by taking short positions.

However, the announcement of a ceasefire from former US President Donald Trump triggered a sudden increase in the price of BTC.

As a result, short positions worth around US$500 million were liquidated, causing huge losses for small investors who expected the price to continue to fall.

Small and Large Investors’ Strategy Contrast

While small investors tend to react quickly to geopolitical news by opening short positions, institutional investors maintain their long positions.

This difference in approach highlights the strategic gap between reactive small investors and institutions that focus more on the long term, showing their belief in Bitcoin’s potential despite market volatility.

Lessons from This Incident

This incident highlights the risks that small investors face when they react too quickly to geopolitical news without a solid strategy.

While institutions remain calm with their long positions, small investors suffer losses due to the liquidation of their short positions.

This serves as a reminder of the importance of a prudent investment approach and not making hasty decisions based on momentary news.