Bitcoin’s stay above $10,000 only lasted about a day as the major cryptocurrency sunk just below that key mark on Monday. This prompted the majority of the market to follow suit as most other cryptocurrencies have a strong correlation to Bitcoin’s movements, except Binance Coin (BNB)
In fact, while Bitcoin may be having an impressive start to the year and the decade, it is still being well beaten by BNB, for one. Binance Coin had a better 2019 than Bitcoin, and a better January than the top coin by market cap, as BeInCrypto has previously reported.
Now, the utility token for the large cryptocurrency exchange is showing divergence from the market as it gains in value by over six percent on the day compared to the other high-ranked coins which are all in the red.
Big Boom for the BNB
Part of the reason for this divergence from Bitcoin is that Binance Coin has been growing steadily over the last five days. It has climbed as much as 40 percent in this period. BNB looks to be cutting its own path rather than following the rest of the market – which is bullish, but currently showing losses.
The true divergence came into the new week where BNB rose to as high as $24.55, representing a six percent gain on the day in comparison to Bitcoin’s near three percent loss over the same 24 hours.
Of course, Binance has been in the news quite frequently of late, especially concerning opening futures trading on many of the top 20 coins as ranked by market cap. But for the BNB price, the addition of its own token into the mix, with 50X leveraging, must be playing a role. [Binance]
The addition of BNB/USDT perpetual contracts could play a part in the growth of the value of the coin as well. Of course, the timing of this pairing has come when the market sentiment, in general, is very bullish. But at the same time, its announcement has not caused an unsustainable spike.
When Binance announced it would be adding XRP futures to its stable, there was a clear and obvious spike that came with offering this opportunity to trade on the coin, but that spike was less sustainable than this BNB movement.
Once the excitement about the futures contracts subsides, it will be interesting to see which way BNB’s price goes. Bitcoin is heavily favored to soon bounce back above $10,000, but if it takes BNB up with it is yet to be seen, as the coin could very well dump slightly as the future’s news calms down.