Originally published on: December 04, 2024
BNB has taken the cryptocurrency market by storm, surging 22.50% in the past 24 hours to hit a new all-time high of approximately $794 on December 4th. This massive increase comes at a time when the overall crypto market is up by only around 3%.
The rally of BNB, also known as Binance Coin, was sparked by a mysterious tweet from Binance co-founder Changpeng Zhao, hinting at the beginning of “altseason.” During altseason, alternative cryptocurrencies tend to outperform Bitcoin in terms of percentage gains.
As a result, Bitcoin’s dominance index has dropped from 61.53% to 54.73% over the past two weeks, indicating a shift in investor sentiment towards altcoins. This shift has propelled BNB’s market dominance up by 18.41% since December 2nd.
Recent price surges by XRP and Tron have further fueled the bullish momentum in the crypto market. XRP saw a price spike of over 125%, while Tron recorded gains of more than 120%, reclaiming its spot in the top 10 cryptocurrencies by market cap.
The surge in BNB’s price is also attributed to activity in the futures market, where short positions faced significant liquidations compared to long positions. This imbalance in liquidations suggests a potential short squeeze scenario, driving BNB’s price even higher.
Today, BNB’s price rally is part of a breakout from a cup-and-handle pattern, signaling further upside potential. Analysts predict that BNB could reach as high as $2,500 by 2025 if the current bullish momentum continues during altseason.
Traders are advised to stay informed and exercise caution in this highly volatile market. This article provides valuable insights into the market trends but does not constitute legal or investment advice. Stay updated with the latest news by subscribing to our Markets Outlook newsletter for strategic investment opportunities and risk management strategies.