Binance retail traders sold $1 billion in BTC, increasing pressure

The Bitcoin (BTC) market is once again facing increased pressure from retail traders. According to Amr Taa, on October 30, Binance users witnessed a massive selloff of over 9,200 BTC, worth approximately $1 billion. This marked the second major wave of selling this month. Both events occurred at a price of around $108,000, highlighting the activity of short-term speculators.

Historically, retail investors on Binance behave significantly differently from long-term holders. The former act impulsively, reacting to short-term fluctuations and often locking in losses. Investors, on the other hand, use such sell-offs to accumulate positions. The current surge points to a strong emotional component to trading, typical for retail investors during periods of high volatility.

Additional pressure on the price was created by outflows from spot Bitcoin ETFs on October 29. According to reports, BlackRock withdrew approximately $2.6 billion, Fidelity $790 million, and Grayscale $500 million. These funds were apparently moved to spot exchanges, where massive trades subsequently occurred. The synchronicity between the actions of ETF holders and Binance traders increased short-term market volatility.

Notably, ETF flow dynamics demonstrate an inverse relationship with price movement. When a wave of selling occurred in funds on October 22, the BTC price soon rebounded from $108,000 to $114,700. Conversely, the surge in buying on October 27 coincided with a drop below $107,000. This suggests that a significant portion of ETF holders are retail investors acting irrationally and without regard for macroeconomic factors.

Analysts emphasize that the combination of simultaneous selling by Binance traders and ETF holders has historically coincided with local price bottoms. Such surges of panic selling often end short-term corrections, followed by periods of recovery.

Source: cryptonews.net