BNB’s price has rebounded more than 10% from its six-month low of $220 as short traders were squeezed alongside rising open interest. Here are the most important things to know about this development:
1. Short traders were squeezed: Short traders who bet against Binance Coin (BNB) were caught off guard as the cryptocurrency’s price rebounded. This caused them to buy back their positions, driving up the price even further.
2. Rising open interest: Open interest, which refers to the number of outstanding contracts in a futures market, has been rising for BNB. This indicates that more traders are entering the market and taking positions on the cryptocurrency’s future price movements.
3. Positive news for Binance: The rebound in BNB’s price is positive news for Binance, the cryptocurrency exchange that created the coin. Binance has been facing regulatory scrutiny in various countries, and a strong performance by BNB could help boost investor confidence in the exchange.
In summary, BNB’s price rebound is a result of short traders being squeezed and rising open interest. This is positive news for Binance and could help boost investor confidence in the exchange.