Binance Coin (BNB) price stabilized at $560 on Tuesday, with its 9% decline representing the lowest losses among the top five crypto assets. Rising trading volumes appear to cushion the impact of negative market sentiment following Trump’s decision to exclude BNB from the newly established crypto strategic reserve.
BNB Drops After U.S. Reserve Exclusion
Trump’s BNB Exclusion
Trump’s decision to exclude BNB from the Crypto Market Strategic Reserve signals an intent to prioritize projects with a substantial corporate presence in the U.S. Binance’s early ties to China are notable, as Chinese-born Changpeng Zhao founded the exchange. Two other key reasons for the exclusion could be Binance’s recent legal troubles under the Biden administration. The firm paid over $4.6 billion in fines, and CZ was jailed. Although CZ was released in December 2024,
Binance’s U.S. subsidiary remains embroiled in litigation with the SEC. The exchange only recently reinstated U.S. deposit and withdrawal functionality last month. Hence, Trump’s decision to exclude BNB may be a strategic effort to avert political backlash and avoid interfering in ongoing legal proceedings involving U.S. regulators and Binance’s U.S. subsidiary.
BNB’s Sentiment Drops After Reserve Exclusion
BNB has traded sideways over the past week, reflecting lukewarm market sentiment. Following its exclusion from the crypto reserve announcement, BNB’s weekend gains were limited to single digits. Changpeng Zhao (CZ) led the market reactions, expressing optimism that BNB could be listed in the reserve at a later stage. However, CZ’s optimism did not resonate across the broader market. Santiment’s Weighted Sentiment chart below tracks the balance between negative and positive comments a project receives on any given day, providing direct insights into shifts in community sentiment.
As seen below, BNB’s weighted sentiment peaked at 6.59 on Feb. 13. However, after Trump excluded the Binance native coin from the 13e strategic reserve, market sentiment plunged 103%, entering negative territory at -0.16 as of March 4. This indicates negative comments about BNB now, in March, and four positive discussions across various crypto media channels.
BNB’s Resilience Amid Market Turmoil
BNB’s exclusion from the strategic reserve has triggered a wave of negative comments, as reflected in the weighted sentiment chart. However, another market catalyst has helped counteract the impact on BNB’s price action. On Monday, Trump confirmed the commencement of 25% tariffs on imports from Canada and Mexico, sparking instant sell-offs across global cryptocurrency markets. Among the top five cryptocurrencies, Binance Coin (BNB) is the only asset to post losses of less than 10% since Trump’s tariff announcement. The rapid market sell-offs may have boosted demand for BNB as investors seek trading discounts to mitigate losses on high-volume sell orders.BNB’s role as an exchange utility token makes it an attractive hedge during volatile periods.
Traders who hold and stake BNB receive discounts on Binance trading fees. During heightened trading activity, investors often purchase more significant amounts of BNB to cover expenses more efficiently while unlocking additional discounts. This inadvertently drives demand for exchange-native tokens like BNB during intense market sell-offs. Supporting this stance, BNB market volumes have remained elevated two days following Trump’s tariff confirmation, signaling increased demand from traders leveraging Binance’s fee discount mechanisms to navigate turbulent market conditions.
BNB Price Shows Bullish Reversal
BNB is trading at $584.19, recovering from a recent low near $550, a critical support level that aligns with the lower boundary of the Keltner Channel. This level has historically acted as a demand zone, preventing further downside. If bulls defend this region, BNB could push toward the midline resistance at $618.49, with a potential extension to $685.79, where previous selling pressure emerged.BNB price action on Tuesday shows a bullish rejection wick, signaling possible accumulation at current levels.
Final thoughts
Over the previous week, the paper offers a perceptive study of Binance Coin’s (BNB) price fluctuations and their underlying causes. Notwithstanding several unfavorable events, such as U.S. President Donald Trump’s omission of BNB from the Crypto Strategic Reserve, the asset has shown resiliency, especially compared to other leading cryptocurrencies. The exclusion is noteworthy since it draws attention to possible issues over Binance’s legal problems and ties to China, which have put the asset in conflict with American political and legal attitudes.
The paper also emphasizes BNB’s function as an exchange utility token, which has offset its price action in the face of more general market drops like those brought on by tariff announcements. The great demand for BNB, because of its ability to lower Binance trading fees and large trade volumes, has offset the negative mood around the exclusion.
