Binance Sees Retail Exodus as Bitcoin Volatility Sparks Panic Selling

Bitcoin experienced heightened volatility in early November 2025, briefly dipping below the critical $100,000 level before rebounding. This price action triggered a wave of panic selling among retail investors, particularly on Binance, where short-term holders (STHs) and so-called 'clown wallets' offloaded over 250 BTC. Despite the bearish sentiment, on-chain data analysts like CryptoQuant's Amr Taha suggest this sell-off may represent a local bottom, with indicators pointing to an impending reversal. The situation highlights the growing influence of retail trader behavior on crypto markets during periods of high volatility, with Binance serving as the primary liquidity venue for these transactions. Market structure analysis reveals this long squeeze could create favorable conditions for institutional accumulation at lower price levels, setting the stage for the next bullish phase in Bitcoin's market cycle.

Bitcoin Faces Long Squeeze as Retail Investors Panic Sell

Bitcoin's price volatility intensified in early November as it briefly dipped below the $100,000 psychological threshold before recovering. The movement reflects growing bearish sentiment among retail investors, but on-chain data suggests an impending reversal.

CryptoQuant analyst Amr Taha highlights a surge in selling activity by short-term holders (STHs) on Binance, particularly from so-called 'clown wallets.' Over 250 BTC flowed into the exchange on November 3, followed by 517 BTC on November 5. These panic-driven sales typically provide liquidity for long-term holders to accumulate at discounted prices.

The LTH/STH Buy/Sell metric reveals a clear divergence in behavior. While STHs capitulate, institutional players appear poised to capitalize on the fear-driven market. Such conditions often precede significant price reversals in Bitcoin's history.

CZ Expresses Surprise at Trump's Pardon, Denies Any Prior Connection

Changpeng Zhao, founder of Binance, stated that his pardon by former President Donald TRUMP was entirely unexpected and not the result of any personal or business relationship. Zhao emphasized that he had never met Trump, discussed deals, or had financial ties to the Trump family. The pardon came as a surprise, with no prior indication of its timing or approval during the petition process.

Trump, when questioned about the pardon, claimed no personal acquaintance with Zhao, stating, "I don't know who he is." He noted that his sons are involved in cryptocurrency but clarified they operate independently of government affairs. Zhao confirmed his only interaction with the Trump family was a brief, non-substantive conversation with Eric Trump at a Bitcoin event in Abu Dhabi.

The Department of Justice had previously charged Zhao with enabling Binance to become the largest crypto exchange by violating U.S. anti-money laundering and sanctions laws. In November 2023, Zhao pleaded guilty to these charges.