BNB first exceeded in its history the threshold of $ 1,000 and now walks cautiously, as an explorer in an unknown cave, illuminating each step with its flashlight.
Is that currently the cryptocurrency BinanceBitcoin Exchange (BTC) and cryptocurrencies, is in unexplored territory. That is, it is at a level at which investors had never operated, so there are no supports or resistance that can be used to develop a founded technical analysis.
However, there are several factors that suggest that BNB could maintain a medium and long term bullish potential.
Before seeing in detail each of them, it is worth noting that at the time of the publication of this note, the native currency of the BNB Smart Chain network is negotiated in $ 985, as seen in the following graph:
The rate cut drives the market
The first thing to emphasize is that BNB received a final impulse to reach the goal of $ 1,000 after the cut of 25 basic points in interest rates by the Federal Reserve of the United States (Fed), which placed them in a range of 4.00%-4.25%.
The reduction of interest rates favors risk assets, such as cryptocurrencies. This is because the cost of loans decreases, which represents an injection of liquidity to the market.
In this regard, John Murillo, B2Broker Business Director, a global provider of Fintech solutions, told cryptootics: “The 25 basic points cut by the FED triggered new flows to risk assets, of which BNB is one of the main beneficiaries. Negotiation volumes were fired, the open interest in futures increased and the activity in BNB Smart chain se. He expanded, indicating that the rebound is backed by a capital rotation. ”
The open interest (OI) of the digital currency exceeded 2,000 million dollars (Billions in English) for the first time in its historyaccording to data of the Coinglass explorer.
This metric is a key indicator of feeling and market activity. When the OI increases, it means that more positions are opening – they are long or short – than those that close, which reflects greater participation, liquidity and enthusiasm among investors, especially in periods of bullish impulse for BNB.
The key is in institutional demand
But, in addition to the macroeconomic context, what are the fundamentals that BNB has to consolidate this upward trend?
One of them is that Binance cryptocurrency is beginning to forge its narrative as an asset of corporate value reserve. As reported cryptootics, companies such as Windtree Therapeutics Inc. and Nano Labs have issued debt to finance BNB purchases, without the need to depend on their financial income.
It is a strategy similar to that designed by Michael Saylor, CEO of Strategy, who through the corporate debt emission displays an aggressive purchase model of Bitcoin (BTC). Thus, it has positioned itself as the company with more BTC in its treasury.
The key difference lies in the objective and usefulness of the asset. Saylor accumulates BTC mainly as a reserve of value and bets on the appreciation of the price. On the other hand, companies that buy BNB not only seek valorization potential, but also take advantage of the ability to generate additional income through staking, which allows them to obtain passive performance on their holdings.
That companies begin to bet on this cryptocurrency is a positive sign for their price. It is that it reflects a constant and consolidated demand The BNB narrative as a reserve asset, which increases its visibility.
Continuing with the price catalysts, it should not be omitted that the Vaneck and Rex-OSPREY investment fund managers have submitted to the stock exchange and securities commission (SEC) applications To list their respective funds quoted in the Stock Exchange (ETF) BNB based.
In the event that these regulated products are approved, the asset would gain greater visibility among traditional investors and increase liquidity within the BNB Smart Chain ecosystem.
This is because ETFs facilitate the participation of corporate and business capital, since they work very similar to the purchase of conventional actions.
Periodic burning mechanism
In addition to institutional investment, it should be noted that BNB is a deflationary assetthanks to the periodic burning mechanism that the Binance Foundation applies to progressively reduce its total supply.
Until the end of 2021, BNB emission was positive (violet area), which meant that the amount of tokens in circulation increased constantly, as shown by the graph of Different trading. This increase represented a risk for the price, because if the demand did not grow at the same pace, the downward pressure was generated on the asset.
From 2023, the BNB broadcast has remained stable and has even shown negative periods, which reflects a change in the dynamics of its supply. This trend reinforces its deflationary nature and could contribute to a sustained increase in its value in time.
On its price, Murillo comments:
Now, the clearest challenge is to stay above $ 1,000. An active profits in the future could bring the price again to the range of 900–950 dollars, but if the institutional demand is maintained, the next objective is the area of 1,100–1,150 dollars. This would be decisive to determine whether BNB is consolidated as a four -digit asset sustainably or not.
John Murillo, B2Broker business director.
If burning continue and manages to attract institutional capital, probably BNB is closer to the four figures than to return to lower levels than the current ones. This is because the combination of lower supply and greater demand could generate a significant bullish impulse in its price.