BNB was one of the best-performing cryptos in 2022, but it may crash in 2023. The exchange did well till now despite the FTX crash and other issues. As the year ends, the coin’s future seems gloomy, and many fear it may tumble lower.
Popular cryptocurrency researcher Nicholas Merten has warned that Binance Coin (BNB) may soon collapse, despite performing quite well in comparison to other cryptocurrencies. Let’s analyze the possible reasons:
Binance Coin (BNB) Is On A Decline
The Database host suggests that the recent downturn in BNB’s performance may be due to fear, uncertainty, and doubt (FUD) surrounding Binance in a new video update to his 511,000 YouTube subscribers.
BNB, which was previously a strong performer in 2021 and 2022, has shown a lack of upward momentum with lower lows and lower highs in recent weeks or months. It appears to be on the verge of a significant decline.
Reasons for collapse
- People are concerned that BNB would end up being classified as a security, which would prevent it from being listed on several US exchanges.
As a matter of fact, we’ve been pretty understated in our approach to the Binance rumors and speculation. There may be no basis for much of the fear and uncertainty being spread. There’s no reason you can’t take your money off of exchanges whenever you want, although I do think Binance is superior to Coinbase in many aspects. It’s on par with reputable exchanges like Coinbase and Kraken, where your money is always safe.
- Additionally, Merten is sounding the alarm about the bearish price action in the equity markets having an adverse effect on cryptocurrency.
Crypto Next Year
Nicholas Merten expresses concern that the S&P 500, which tends to influence the behavior of crypto asset prices, may be at risk of a significant decline similar to the 2008 financial crisis. He notes that the S&P 500 is currently being tested at its 200-week high and may fall back down if it cannot maintain this range of support.
While it is possible that the downturn may not be as severe as the 2008 crisis, the charts are warning of potential difficulties ahead. The host does not necessarily imply that this will happen, but rather raises the possibility as a cautionary warning.
Analysis of Binance Coin (BNB) suggests that there may be a reversal in the near future. Currently, market bears appear to have control, but if bulls do not bounce back soon, bears could take over the market. If the price breaks support, bears could have a significant impact on the market, potentially causing it to favor bulls. It is important to monitor the market closely in the coming days to see if a reversal does occur.