On November 6, 2025, Binance, under the leadership of CEO Richard Teng and President Heina Chen, removed several leveraged trading pairs, significantly impacting the Bitcoin derivatives market. This strategic move aimed to curb speculative trading and promote market stability, aligning with broader efforts to foster a healthier crypto environment.
The leverage reset triggered substantial market adjustments, with the crypto market experiencing $19 billion in liquidations during October, leading to Bitcoin's price correction from above $110,000 to roughly $102,000. According to a CryptoQuant report shared by analyst Crazzyblockk, Binance's Short-Term Estimated Leverage Ratio (ST_ELR) dropped to 0.2247 on November 8, falling below its 20-day average of 0.2391 and nearing its lower volatility band of 0.2069. This decline indicates reduced risk and a cooldown after heavy liquidations, with historical data suggesting such conditions often precede short-term stabilization or price rebounds.
Rachel Lin, CEO of SynFutures, emphasized the positive impact, stating, "October’s correction has done what it needed to: it has flushed out leverage and re-set sentiment." Institutional investors maintained interest in crypto assets despite the volatility, signaling confidence in long-term prospects. The analysis concludes that this deleveraging phase lays a foundation for gradual recovery or sideways consolidation, reinforced by Binance's robust risk management systems and deep liquidity reserves.
ETH
PEPETO
BNB