Bitcoin Plunges Below $81,000: Binance Breaks Silence Amid Market Turmoil

• What Triggered Bitcoin's Sharp Decline Below $81,000?
• How Deleveraging Accelerated the Crash
• Is This a Structural Reversal or Healthy Correction?
• Binance's Calm Response to Market Panic
• When Will the Storm Pass?
• Frequently Asked Questions

The cryptocurrency market is experiencing one of its most turbulent weeks in 2025, with Bitcoin crashing below the $81,000 support level amid a wave of deleveraging. Binance CEO Richard Teng has issued a measured response, calling this a "natural correction" after months of bullish momentum. This article breaks down the key factors behind the crash, analyzes whether this is a temporary dip or a trend reversal, and examines how major players are reacting.

What Triggered Bitcoin's Sharp Decline Below $81,000?

The sell-off happened with alarming speed - like someone pulled the rug from under the market. Red candles dominated the charts, trading volume spiked, and the RSI plunged toward oversold territory at 20. I've seen this movie before during major liquidations, and the atmosphere feels eerily similar. Traders are glued to their screens, unsure when the bleeding will stop.

According to TradingView data, bitcoin has dropped approximately 18% in the past seven days, nearly 25% over the last month, and over 30% since early October. The movement isn't isolated to BTC either - ETH, SOL, BNB, XRP and ADA are all sliding down the same slippery slope. This confirms we're seeing a broad market correction rather than Bitcoin-specific weakness.

How Deleveraging Accelerated the Crash

The mechanics behind this drop reveal a classic liquidation cascade. As macro uncertainty returned to traditional markets (even Nvidia's strong earnings couldn't lift the tech sector), crypto followed suit. Margin positions began unwinding rapidly - the perpetual futures market saw massive position closures exactly where selling pressure intensified.

This created a self-reinforcing cycle: forced liquidations beget more liquidations. The BTCC derivatives dashboard showed open interest collapsing by 42% in 48 hours as traders got wrecked. In these moments, the market stops trading on fundamentals and becomes purely mechanical - stop losses trigger more stop losses until the flush completes.

Is This a Structural Reversal or Healthy Correction?

Despite the bloodbath, several factors suggest this may be a severe correction rather than a trend reversal:

• The $78,000 level (May 2025's support) could attract buyers if tested
• Bitcoin's hashrate remains near all-time highs, indicating miner confidence
• Long-term holders aren't panic selling - Coinmarketcap data shows exchange outflows continuing
• ETF outflows appear to be portfolio rebalancing rather than mass exodus

As one analyst quipped on X: "No one is telling you this, but BTC is sitting in the bounce zone. The worst thing you can do now is sell." The chart does show Bitcoin approaching historically oversold conditions that often precede sharp rebounds.

Binance's Calm Response to Market Panic

Amid the chaos, Binance CEO Richard Teng struck a deliberately calm tone. In his view, this represents a "logical deleveraging" after an exceptional rally. He emphasized that volatility is intrinsic to crypto markets, even when it's more violent than anticipated.

Teng also addressed the elephant in the room - whether former CEO Changpeng Zhao might return after completing his sentence. "No decisions have been made," Teng stated, while highlighting Binance's seven-member board (including three independents) as ensuring stability.

When Will the Storm Pass?

Predicting the exact bottom is always a fool's errand, but several signs suggest we may be nearing capitulation:

• Funding rates have normalized after being excessively positive
• The futures market has shed significant leverage
• Retail traders are showing extreme fear (per Crypto Fear & Greed Index)

While painful in the moment, these flush-outs often create the healthiest foundations for the next leg up. As the old trading saying goes: "The market takes the stairs up and the elevator down."

Frequently Asked Questions

How far has Bitcoin dropped in November 2025?

Bitcoin has declined approximately 25% month-to-date in November 2025, with the most severe drop occurring on November 21 when it broke below $81,000.

Is this Bitcoin crash different from previous ones?

While similarly severe to past corrections, this drop appears more mechanical (leveraged position unwinding) than fundamental. The underlying Bitcoin network metrics remain strong.

Should I sell my Bitcoin during this crash?

This article does not constitute investment advice. Historically, selling during extreme fear periods has proven suboptimal, but each investor's situation differs.

What's Binance's view on the current market situation?

Binance CEO Richard Teng characterizes this as a natural market correction following an extended bullish period, emphasizing that volatility is expected in crypto markets.

Where is Bitcoin's next major support level?

Traders are watching the $78,000 zone which previously acted as strong support in May 2025. A hold here could signal stabilization.