Analysis suggests that the Binance-affiliated token BNB now targets new all-time highs facilitated by sidelined liquidity and negative correlation with Bitcoin.
Despite a broader market uncertainty, BNB has continued to thrive. The fifth-largest cryptocurrency by market cap surged to a new all-time high of $906 on Wednesday, as the buzz around its ecosystem persists.
While it has receded slightly to trade at $899 at the time of writing, an analysis suggests the bullish trend could continue. Specifically, CryptoQuant verified commentator Timo Oinonen has predicted that new all-time highs are in order for BNB, highlighting potential catalysts.
BNB Decouples from Bitcoin
Bitcoin reclaimed $114,000 on Wednesday for the first time in September, as major inflation data came in cooler than expected. Before that, it had been gloomy for the pioneering cryptocurrency, which fell from its all-time high of $124,457 in August to $107,000 earlier this month.
However, BNB has performed better. Over the past 30 days, the altcoin has increased by 10.7%, compared to Bitcoin’s 4.24% decline. The divergence indicates that BNB is now negatively correlated with Bitcoin, with the disparity coefficient reaching -0.27 at the time of Oinonen’s analysis.
Meanwhile, the analysis suggests that this would be for the greater good of BNB, especially as we approach the historically bullish period of the crypto market. The fourth quarter of the year has historically seen Bitcoin hit new highs, and Oinonen projects that BNB will follow its trajectory but with amplified gains.
As a result, he predicts that BNB would reach $1,000 in the short term and potentially rally to $1,500 by the end of Q4 2025. This outlook aligns with a recent price prediction from Ash Crypto, who said BNB could hit between $1,500 and $2,000 by the end of the year.
Growing Stablecoin Reserve to Provide Liquidity for BNB Rally
Moreover, Binance’s Ethereum-based stablecoin reserves have grown with the price of BNB, providing sidelined liquidity. It appreciated from a low of $32 billion in August to $38 billion, representing a 19% uptick in the past few weeks.
The CryptoQuant analyst noted that the unused capital would act as an enabler for further rallies in the final quarter of 2025, which will extend to the first quarter of 2026.
Additionally, he also tapped the auto-burn mechanism on the BNB Chain to help reduce the total supply of the token, creating scarcity. Notably, Binance introduced the mechanism in December 2021 to keep BNB deflationary, automatically incinerating a portion of its supply based on price and the number of blocks produced on the BNB chain each quarter.
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