On November 4, 2025, BNB fell below the $950 mark, highlighting a significant shift in market dynamics as capital moved away from exchange tokens and into privacy-focused assets like Zcash. This drop occurred amid a broader market where Bitcoin was testing its support levels, partly due to long-term holders taking profits. The sell-off triggered substantial liquidations, echoing concerns from a similar event in October and putting pressure on treasuries and leveraged positions tied to exchange tokens.
BNB Buckles Under Pressure
BNB faced a sharp decline, breaking through the key psychological and technical support at $1,000. By November 4, its price had retreated below $950, cementing a weekly loss of over 12%. This weakness is part of a longer-term trend; data from late October showed BNB had already been struggling, with its performance lagging behind other Layer 1 tokens.
The scale of the drop triggered a wave of liquidations in the derivatives market. This event was a stark reminder of the vulnerability of leveraged positions, with one analysis of a prior liquidation event on October 10 revealing that such episodes can wipe out hundreds of billions in open interest almost instantly, creating a vicious cycle of selling.
Privacy Coins Defy the Trend
In a striking contrast, the privacy coin sector demonstrated remarkable strength during this downturn. Zcash (ZEC) stood out, having evolved from niche technology into a functioning encrypted-money network . Its monthly gains were massive, and it even surpassed Monero to become the largest privacy-focused cryptocurrency by market capitalization. This surge propelled the entire privacy segment’s market cap upward, signaling a clear rotation of capital into assets perceived as uncorrelated to the broader market sell-off.
Navigating the New Market Landscape
This divergence between a falling BNB and rising privacy coins has immediate implications. For risk managers, the breach of $1,000 for BNB is a critical level to monitor for further potential losses and liquidity stress. The rally in privacy coins, while offering lucrative opportunities, also carries the risk of attracting increased regulatory scrutiny due to their anonymous nature.
The market is at a crossroads. The next steps for BNB and privacy coins will be decisive for liquidity and risk management. The key will be watching whether BNB can reclaim the $1,000 level and if the privacy coin rally can sustain its momentum without prompting a regulatory response.
