4 bullish and 2 bear considerations for Binance Coin (BNB) on the way to 2023 (opinion)
4 bullish and 2 bear considerations for Binance Coin (BNB) on the way to 2023 (opinion)
The cryptocurrency market recovered early in early 2023, but many remain skeptical whether the continued rally will be long.
Some stock exchanges, including Coinbase and Crypto.com, continue their staff reduction in order to survive the macro bear market, but others remain resistant. A typical example - Binance.
BNB Coin is the native token of the stock exchange. It is a basic shift cryptocurrency and acts as a basic currency unit for the build 'n' Build Chain (formerly: Binance Smart Chain) or BNB Chain. It also works as originally intended as an utility token for the stock exchange and offers users discounts such as discounts on trade fees and a nerd cult of strongly deflationary tokenomics.
The following summary is not precise bnb coin price forecast . Instead, it offers an overview of some selected great potential counter and tailwinds, which BNB will be exposed to in the course of 2023.
Four large tailwinds for the course of BNB in 2023
Bull Run: The BTC Prize could continue to rise
The Bitcoin price is the fundamental gravity in the crypto stock market market. With the price of Bitcoin, the price of old coins.
Although the Ethereum network has increasingly challenged its dominance.
Nevertheless, the prices are inseparable even in this advanced stage of the introduction and development of Ethereum with the economy of Bitcoin. They have a strong statistical correlation.
crypto investors can therefore expect the BNB together with Ethereum and other old coins on Bitcoins rock shots. The question is in which direction will the price of Bitcoin go?
Although there are reasons for caution, there are also many reasons to expect a bull run for Bitcoin in 2023.
This includes a new confidence in the cryptos sector after several of the bad actors have been washed out. The problems of 2022 also renewed all old reasons to stay with active user bases for decentralized layer 1 cryptos, instead of centralized apps with an ERC-20 that is operated by a crowd careless and unscrupulous intermediary.
Bitcoin could also recover from a macro stock rally if the stocks attract in 2023. But above all, it is a strong product with strong fundamental data and a brilliant future that is imminent in the next decade and beyond.
If the macro risk aversion finally goes on risk, these attractive prices will be impossible for investors. And then there are institutional investors and large hedge funds around the corner of the corner. If Bitcoin gets legs in 2023, BNB will almost certainly be on the hunt.
Clarity: US supervisory authorities could issue clear rules
At the moment, the entire cryptocurrency industry in the United States is caught in a regulatory floating state.
Due to the federalism (shared powers) of the US government and the sophistication of the capital markets in our time, nobody is yet sure who is really responsible for the cryptocurrency.
In fact,crypto is such a new invention that they simply do not fit into the existing categories with which US legislators, supervisory authorities and dishes had before.
Binance and the native token of its platform are in a worse regulatory trap than its competitors on the US front. It was not possible to be noted on other US exchanges than your own because the owners fear that it was a risky token.
You are concerned, despite your strong, active user base and enormous market capitalization, because BNB could suddenly be subject to securities such as stocks and derivatives of the second regulation.
But could BNB be classified as security even if the case is discussed?
In its case against FTX Exchange, the SEC argued in front of the United States District Court Southern District of New York.
Since part of her argument was that the FTX exchange has a "Buy and Burn" program-similar to stock returns-and Binance token from the quarterly gains-the crypto exchanges are cautious that BNB could be classified as securities.
But it is not necessarily clear that the token burns from Binance work just as much as FTX's buy-and-burn program. And BNB is not just a liquid digital asset whose market price can be manipulated.
It is a script for interoperability with developer apps and the basic layer blockchain BNB Chain. It is almost more like a form of speech than a share of a stock corporation.
In addition, it would be quite difficult for the situation that Ether is classified as a securities instead of as goods that emerged from a global decentralized computer. And if Ether is a product and not a securities, it would be quite difficult to get BNB to remain a securities.
If the congress or an agreement of regulatory authorities BNB together with Bitcoin and Ether declares a raw material, this will immediately remove an enormous source of the insecurity of the investors.
Ruf: Binance is strong
The Forbes Digital Assets Column is titled a story about Binance and BNB Coin: "Binance lets assets bleed, $ 12 billion has disappeared in less than 60 days"
This is an enormous amount of reserves from which Binance can draw internally in order to fulfill all of its customers. One could say it sounds pretty bad, but when the average crypto investor consider that Binance has remained solvent, it sounds pretty good.
You were good for the money. On several occasions, managers of the stock exchange have said that Binance is willing to operate and fulfill the payment request for each individual customer, even if this means to withdraw every cent from the platform.
At some point this month, Binance processed in a single day payments of over $ 7 billion.
Accounts and new accounts were not blocked. There were no bankruptcy or second examinations. Binance customers have just got their cryptos or money back. You won't forget that. It is a real stress test that brought several other custodian banks into stumbling, but not Binance.
The resulting reputation will continue to make you irresistible. Investors and dealers and new crypto projects with top talents and ideas were noticed.
Foundations: a more precise view
The largest tailwind of BNB is the sheer volume of the crypto trades, which are executed by its platform, and the fees that it raises to facilitate these stock exchanges.
Binance handles trading volume in billions of bills every day. For these transactions, it charges both buyers and sellers of cryptocurrencies in percentages.
According to a current report by Arcane Research, Binance's proportion in the BTC trading volume rose in the course of 2022 and ended the year with 92 % of the trade volume. Arcane Research came to the conclusion:
"No matter how you look at it in terms of commercial activities, Binance is the cryptom market. After the trading fees for its BTC spot couples this summer, Binance has completely taken over all market shares in the spot market."
essentially Binance is a profitable private company that is getting green light in more and more jurisdiction around the world.
Two large headlines for BNB Coin Prize 2023
Bear Rout: BTC could get more discounts in 2023
It seems that the cheap Bitcoin price should attract more eager buyers. But some disagree.
The price of Bitcoin is a complex variable that consists of all types of macro, fundamental, industry and technical factors. There is still no guarantee that the valley sole has been reached, and the crypto winter could still last a year until the market has moved.
The price of Bitcoin could accept another continued decline in 2023. It could be depressed with low volatility. It could not go anywhere without an upcoming rally. That would probably give the BNB course a headwind.
Possible Bear Case Scenarios for the Bitcoin Prize in 2023 are: The insolvency crisis of the crypto business could continue to develop, there could be further shocks for confidence in investor, the US regulatory uncertainty in relation to crypto, etc.
If this happens, crypto investors can expect this to also mean the BNB course.
regulatory antagonism or ambiguity
The supervisory authorities in the USA were strictly against, probably for security reasons and for reasons of global strategic confrontation. You could soon act to rule BNB as security.
BNB could not be listed on any US exchange, with the exception of Binance Us. This could be due to the fact that they fear that the supervisory authorities could pass at any time to rule BNB as security. If this happens, it falls into the responsibility of the Sec.
This can lead to the price of being affected if this ever happens, but it will certainly not be a death blow for BNB.
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