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Binance Coin experienced a sharp bearish breakout in recent hours.
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Paxos has been ordered by U.S. regulators to stop minting BUSD.
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Binance has recorded notable outflows over the past seven days.
Binance Coin (BNB) pulled back on Monday, becoming the weakest performer among major-cap cryptocurrencies as regulatory concerns intensified. BNB fell to a low near $287, about 14% below its highest level so far this year.
Paxos ordered to stop minting BUSD
The primary catalyst behind the recent BNB weakness is the announcement concerning Paxos, the U.S.-based issuer of Binance USD (BUSD). Regulators in New York directed Paxos to halt minting the stablecoin. Paxos issues BUSD under Binance’s brand, a development that immediately shook market confidence.
As Paxos winds down new issuance while continuing to meet its existing obligations, the market capitalization of Binance USD is expected to decline. Like other major stablecoins such as Tether and USD Coin, BUSD is backed by reserves that include U.S. dollars and other securities.
BUSD’s new status is significant because it ranks as the third-largest stablecoin by market cap after Tether (USDT) and USD Coin (USDC). At this stage, however, it remains uncertain how large or lasting the impact on the broader market and on BNB itself will be.
At the same time, Binance’s exchange has seen continued net outflows. Data from DeFiLlama shows Binance’s total assets on the exchange are roughly $70 billion. Net outflows in the past 24 hours were about $343 million, and outflows over the last seven days exceed $400 million. These withdrawals suggest increased investor caution amid the regulatory developments.
Exchange flows are mixed across the industry. In the past 24 hours, exchanges such as OKX, Huobi, SwissBorg, and Binance.US attracted inflows of more than $10 million, while others including Bitfinex, Crypto.com, and KuCoin reported outflows.
BNB price action is also being influenced by macroeconomic events: traders are watching the upcoming U.S. Consumer Price Index (CPI) release scheduled for Tuesday, which could shape expectations for Federal Reserve policy and broader risk appetite.
Binance Coin price outlook
BNB chart by TradingView
On the hourly chart, BNB has been trending lower over the past several days. Price broke beneath a key support level near $301—the low from February 10—and dropped below the 23.6% Fibonacci retracement level. The coin is trading under both the 25-period and 50-period moving averages and has formed a bearish flag pattern, indicating momentum remains to the downside.
Given the current structure, BNB could continue to decline toward the next major support around $270. Conversely, a sustained move back above the $300 level would undermine the bearish case and could prompt a recovery attempt.
How to buy Binance Coin
To buy Binance Coin, investors can use regulated cryptocurrency exchanges that list BNB. Before trading, confirm the exchange’s compliance measures, fees, and supported payment methods, and consider using secure custody options such as hardware wallets for long-term holdings. Always perform your own research and be mindful of regulatory updates that may affect availability and market liquidity.