Binance CEO Says Bitcoin Drop Reflects Broader “Risk-Off” Trend
- Bitcoin’s 21% decline reflects broader risk-off market trends and investor caution.
- Despite the slump, Bitcoin remains more than double its 2024 price amid institutional growth.
- Deleveraging and record Bitcoin ETF outflows indicate growing caution among investors.
Bitcoin, the largest cryptocurrency by market value, plunged more than 21% in November. This adds to the losses of the past three months, placing Bitcoin’s total loss at 23.2%. If the momentum fails to recover, the cryptocurrency could end the year below $90,000, after its record high above $126,000 in early October.
According to Richard Teng, the chief executive of Binance, the crypto market is undergoing a cycle of risk-off behavior, a common trend across different asset classes. He noted that investors across many asset classes were reducing leverage, highlighting that the pattern was not limited to cryptocurrencies.
Teng noted that even after the decline, bitcoin is still trading at more than twice its 2024 levels. He argued that the crypto market has enjoyed significant gains over the past 18 months and that some profit-taking is natural. According to Teng, a period of consolidation could benefit the sector by allowing it to “take a breather” and find its feet.
ETF Outflows and Sentiment Under Pressure
Exchange‑traded funds (ETFs) have exacerbated the decline. Data from Farside Investors shows that U.S. spot bitcoin ETFs recorded net outflows of $903 million on Thursday, 20 November, the largest daily redemption since the products launched in January 2024.
The redemptions erased a mid-week inflow of $75.4 million and pushed total November outflows to $3.79 billion. Analysts caution that November could become the worst month on record for bitcoin ETF redemptions if flows do not recover.
BlackRock’s iShares Bitcoin Trust accounted for $2.47 billion of those redemptions alone, or 63% of the total outflows from U.S. Bitcoin ETFs. Fidelity’s Wise Origin Bitcoin Fund (FBTC) ranks second with $1.09 billion in outflows. Together, these two funds represent 91% of November’s ETF redemptions.
The spike in redemptions has coincided with heavy liquidations in derivatives markets. Investor sentiment has also deteriorated. CoinGlass’s fear‑and‑greed index now indicates “extreme fear” among crypto traders.
In addition, digital‑asset treasury inflows have collapsed from $10.89 billion in September to just $505 million so far in November. Institutions also seem reluctant to buy into weakness, with 12 U.S. spot ETFs registering a combined $903 million in net outflows last week.
Related: Strategy Inc. Faces Index Risk Amid Bitcoin Exposure Debate
Supply Pressure and Diverging Views on Bitcoin’s Future
On‑chain data suggest that Bitcoin long-term holders have accelerated profit-taking. The selling has increased supply on exchanges and outweighed demand from new buyers.
VanEck also noted that BTC wallets holding Bitcoin for over five years increased by about 278,000 over the past 2 years. Analysts note that institutional buyers have absorbed some of this supply, but the overall demand shortfall continues to pressure prices.
Binance’s Teng maintains that bitcoin’s volatility is now comparable to that of mainstream assets and that the sell‑off reflects broader market cycles rather than a crypto‑specific crisis. He added that bitcoin’s current level remains more than double its 2024 price, underscoring the scale of recent gains.
Despite the rise, long‑time crypto critic Peter Schiff warned that bitcoin’s reputation as a top‑performing asset “no longer holds” in 2025. He noted that the token has dropped nearly 30% from its dollar peak and 42% when priced in gold. Schiff suggested that bitcoin could face more pressure if it falls below $88,000 and argued that 2026 might be “far worse” for the cryptocurrency.
