Binance Coin, the native token for BNB Chain has seen a significant surge. Its recovery streak is now in its third week.
BNB’s price on August 22nd, 2024 was $574.93. This represents a rise of 3.2% over the previous 24 hours, and an 8.8% increase in the last seven days. The 179.1% growth over the 12 month period is also reflected.
The impressive performance of Binance is due to several factors including the strategic expansion by Binance of its Compliance team, the dovish signals coming from the Federal Reserve and the market conditions that continue to be favorable for cryptocurrency.
Binance expands its Compliance Team
Binance’s expansion of its compliance team is one of the major factors behind BNB’s recent price increase.
Binance is one of the largest crypto exchanges in the world. It has been under increasing scrutiny from regulators over the last year. This was mainly due to its Anti-Money Laundering practices (AML), and the consumer protection policies.
Binance has announced that it will significantly increase its workforce for compliance in 2024 to address these issues.
Richard Teng said that at least 20 percent of new employees will focus on improving the regulatory compliance efforts.
The move can be seen as an effort to enhance Binance’s operational stability and reputation, and attract institutional investors and users to the platform.
Binance announced the news shortly after it was sued by three cryptocurrency investors for failing to protect their assets from money laundering.
Binance’s compliance team is being expanded to reduce such risks. This will likely contribute to an increase in demand for BNB.
Binance Coin BNB: Market conditions favorable
Binance’s internal development is not the only factor that has influenced BNB’s increase in price. Other market-wide factors also play a major role.
Federal Reserve meeting minutes from July were released recently. Several Fed officials acknowledged the possibility that interest rates could be cut in September.
The dovish attitude has increased investor confidence, especially in assets that do not yield a return like BNB and cryptocurrencies.
Bond traders are now predicting a 75.5% chance of a rate reduction of 25 basis points in September. This is up from a mere 62% a day ago.
Cryptocurrencies are more appealing to investors when interest rates fall.
BNB’s price is also affected by the dynamic of the futures markets.
BNB Futures have seen a large number of liquidations since the crypto market went into a tailspin on August 5.
Coinglass data shows that the number of shorts liquidated has outstripped longs. Since August 5, more than $7.21 millions in short positions have been liquidated, compared with $3.86million in long positions.
For example, on August 22 376.31k positions short were liquidated in comparison to 140.62k positions long. The BNB price has been further pushed upwards by this imbalance.
BNB is approaching a possible bearish reversal
Technical analysis indicates that BNB could be nearing a possible bearish reversal.
Price action currently forms a rising wedge formation, which is typically linked to a possible downward breakout.
BNB could fall to $480 if it fails to hold its current level. This is the bottom of the wedge.
The post Binance coin (BNB), price rises amid compliance expansion and optimism in the market may be updated as new information becomes available.
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