Binance retail traders and ETF investors have increased pressure on Bitcoin.

Bitcoin (BTC) has experienced another wave of selling, fueled by retail trader activity on Binance and significant outflows from spot ETFs. According to analyst Amr Taa, on November 5, Binance users classified as short-term holders (STH) sold off their holdings en masse, selling over 16,100 BTC, equivalent to approximately $1.6 billion. The average transaction value was approximately $101,500 per coin. This data suggests that retail investors remain inclined to sell amid market weakness, exacerbating local corrections.

At the same time, the ETF market recorded significant outflows, adding to the overall pressure on the BTC price. On November 3, funds managed by BlackRock and Grayscale withdrew assets totaling $2.5 billion and $532 million, respectively. According to the researcher, these amounts were partially transferred to spot exchanges, increasing supply in the market. “This behavior is typical of participants with a short-term horizon—investors who react to volatility and changes in price dynamics, rather than fundamental factors,” the expert stated.

The analysis notes that short-term holders (STH) and retail participants, unlike long-term investors (LTH), are more likely to trade emotionally. They tend to sell assets during declines and buy during rises, thereby providing liquidity to large traders who use these periods to accumulate positions. This behavior has been observed repeatedly in the past during the formation of local market lows.

At the same time, long-term holders continue to demonstrate stability and avoid panic selling. Historically, it is precisely these periods, when short-term traders exit positions and large participants accumulate assets, that form the basis for subsequent recovery phases. This scenario was confirmed in both 2018 and 2022, when mass retail capitulation preceded a trend reversal. Despite the decline and outflows, the network's fundamental metrics remain stable.

Source: cryptonews.net