Why is BNB going down after the Burn?
By Yuriy Bishko Updated November 11, 2022
Binance has recently held a coin burn.
Against this background, many beginners in the area of trading bought Binance coins, expecting the coin to grow. In fact, everything is logical: Binance burns coins, there are less coins, less coins means less supply, less supply means more demand.
But at this time we decided to investigate exactly how the price has historically reacted to this news.
As you can see, of all 14 times, including the last one, after burning the coins the price dropped 11 times and only 3 times there was an increase.
I told about this situation in more detail in my video:
I hope you watched our video and it helped you save money.
Additionally, my team has analyzed whether or not there is a correlation of burning with the movement of the main cryptocurrency.
You can find on the chart that the movement of the BNB after the burning almost completely repeated the movement of the main cryptocurrency, which at the same time proves that almost all altcoins correlate to Bitcoin.