Retail FOMO Spikes: Binance Users Buy 6,870 BTC While Long-Term Holders Dump

Retail traders bought 6,870 BTC in one day above $91,400, even as LTHs fell in strength and prices quickly reversed.

Bitcoin traders on Binance have gained 6,870 BTC in one day after the price rose above $91,400 this week, even as long-term holders (LTHs) used the strength to cash out.

The buying frenzy comes against a backdrop of sharp liquidations and declining volumes, raising questions about how long retail momentum can last.

Retail is piling up as long-term holders become stronger

Data from on-chain analyst Amr Taha, published just hours before the price drop, painted a clear picture of a market at a potential turning point. On November 23, realized capitalization for short-term holders (STH), which is essentially the total cost basis for BTC held for less than 155 days, soared past $51 billion.

It marks the highest level since December 2024 and signals a large influx of new, impatient capital entering the market. According to Taha, such peaks have historically coincided with market tops.

Meanwhile, the realized cap for LTHs moved in the opposite direction, falling by about $47 billion, which the analyst said showed that sophisticated investors, who bought at lower prices, were distributing their BTC to the new retail buyers.

This exact pattern was observed before significant corrections in December 2024 and March 2024. As Taha noted, “Any time STH buys aggressively while LTH sells to them, the price tends to cool shortly afterwards.” The subsequent drop in Bitcoin’s price by $5,000 within hours confirmed this historical precedent.

The retail buying frenzy was mainly concentrated on Binance. When the flagship cryptocurrency rose above $91,400, daily purchasing volume on the exchange spiked to a record 6,870 BTC, worth about $628 million at the time.

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Market tremors amid a search for direction

A look at the market shows that the price action has been quite violent. Commentators such as Wise Crypto and The Kobeissi Letter have appeared in the past day marked that more than $600 million worth of crypto longs have been wiped out, included a single $14.48 million ETH/USDC position on Binance, liquidating around $200 million in an hour alone.

Ash Crypto described a $5,000 drop in the price of BTC in three hours, saying more than $200 billion has been erased from the entire crypto market value without any apparent macro or regulatory trigger, calling it a “pure manipulation dump to wipe out leverage again.”

Bitcoin is now consolidating between key levels. The asset is caught between major support near $84,570, where over 610,000 BTC last went, and a significant resistance ceiling around $112,340.

Meanwhile, the rejection from the $91,800 zone has pushed BTC to trade around $86,300, down 5% in the past 24 hours and thus testing the lower bounds of its recent range.