AI Predicts BNB Price to Break $1,000 Within Weeks of the Halving

Key highlights:

• Advanced AI models are forecasting a big breakout for BNB within months after Bitcoin’s next halving event.
• It predicts BNB will smash through $1,000, rocketing over 280% from current prices.
• Each previous Bitcoin halving has kicked off epic crypto bull runs. BNB usually joins the party, often outpacing even Bitcoin itself.

While many well-known projects saw significant gains over the past year, one top token that has remained somewhat stagnant is BNB. However, new AI-powered price predictions indicate BNB may be primed for a monster rally in 2024.

BNB’s muted performance leaves room for growth

BNB may be the native token of the dominant Binance exchange, but its price growth has failed to keep pace with other leading cryptocurrencies in recent months. Over the past six months, BNB is up a modest 5.7% compared to gains of 43% for Bitcoin, over 400% for Solana, 104% for Cardano, and much more for many smaller altcoins.

This relatively muted performance suggests BNB has room to run if macro market conditions become more favorable again. While being the backbone of one of the largest exchanges provides a degree of resilience, BNB lacks the additional catalysts that have fueled explosive rallies in other coins. That could change in the lead-up to the next Bitcoin halving though, according to new technical analysis.

CZ’s stepdown causes short-term bearish sentiment

One factor that may have temporarily dampened BNB price action is the November announcement that CEO Changpeng “CZ” Zhao would be stepping down from his role at Binance. As the long-time face of the company, CZ’s departure understandably caused some bearish speculation around BNB’s future.

However, CZ maintained his position as Binance’s effective leader while transitioning to an advisory role. Many viewed this as more of a strategic restructuring than a reason to abandon the project. Within weeks, the BNB price had recovered, suggesting the initial uncertainty was an overreaction rather than a long-term concern.

AI predicts BNB will surge past $1,000 after next halving

Looking further ahead, AI-powered price prediction models developed by CoinCodex are painting an incredibly bullish picture for BNB following Bitcoin’s next halving event in April 2024. CoinCodex’s six-month prediction for BNB forecasts the token reaching above $1,000- more than triple its current price level.

Specifically, the algorithm expects BNB/USD to hit a high of $1,028.67 in the one month after the halving occurs. This would represent enormous gains of over 280% from BNB’s price of around $268 at the time of writing. But how does the halving act as such a powerful catalyst, and what factors support such an optimistic outlook?

Halvings spur massive bull markets

Bitcoin undergoes a halving event approximately every four years, where the block reward given to miners for validating transactions is reduced by half. This acts to slow the rate at which new Bitcoin enters circulation over time.

Each previous halving has corresponded with the start of a prolonged bull market for the crypto markets. As the supply contraction sets in, demand ramps up massively as traders rush to buy coins before they become more scarce. This cyclical supply shock is viewed as one of the strongest macro drivers for long-term crypto prices.

BNB historically runs with Bitcoin

Price charts show that BNB price action has tended to correlate strongly with moves in Bitcoin over periods of many months. When Bitcoin embarks on a new bull cycle post-halving, this pumps massive volumes of money back into the overall crypto ecosystem. As one of the largest and most widely used tokens, BNB typically benefits enormously from these parabolic upswings.

The last halving in May 2020 was directly followed by Bitcoin more than quadrupling in value over the subsequent 12 months. BNB enjoyed even bigger gains over this period, rising over 6,500% from its 2020 price low. If history repeats, BNB may outperform Bitcoin again coming out of the next block reward reduction.

Other factors supporting a BNB breakout

A few other developments provide foundations for BNB to rally strongly leading into the 2024 halving window according to technical analysts:

Image source: BscScan.com

Growing on-chain activity

Recent data shows transaction volumes and average transaction values are rising rapidly across the BNB Smart Chain, providing evidence of expanding real-world utility for BNB. As more projects, users, and services adopt BSC, the underlying demand for its token strengthens.

Continued product development

Binance continues enhancing its centralized and decentralized exchange products while expanding into new areas like NFTs, gaming, and other Web3 verticals. Each strategic move deepens BNB’s integration and importance within the Binance ecosystem.

Image: Upcoming Token Burn of BNB

Upcoming burn reductions

Binance still burns a portion of trading fees to permanently remove BNB from supply. While the quarterly burn amount decreased in 2023, any supply compression provides long-term price support – especially if burn rates stabilize or rise again.

Weak hands liquidated

The crypto bear market likely forced many weak holders who bought near past cycle tops to capitulate, clearing the order books of those most prone to panic selling. This sets the stage for a tradable bottom defined by strong-handed investors.

Using historical context as a prediction guide

Of course, no price forecast can be guaranteed, but analyzing BNB’s performance in historical bull market contexts provides a reasonable framework. If the next 18 months for Bitcoin unfold similarly to past halving cycles, it’s easy to envision scenarios where BNB challenges or exceeds CoinCodex’s $1,000+ short-term target discussed earlier.

The combination of a post-halving bull trigger, BNB’s tendency to run harder than Bitcoin in upswings, strong fundamental progress, and reduced circulating supply due to burns could converge powerfully. As long as macro conditions don’t take a dramatically negative turn, BNB seems technically primed to benefit enormously from the next Bitcoin reward halving.

The bottom line: AI “sees” BNB skyrocketing 280% on the back of Bitcoin’s block reward reduction

While BNB price action was muted through much of 2023, its lack of explosive gains leaves major room for growth. AI-powered forecasting indicates that BNB is due for a parabolic rally within weeks of Bitcoin’s next halving event in April 2024. Historical bull market cycles, BNB’s correlation with Bitcoin, ongoing technical development, and reduced circulating supply all support a breakout towards $1,000 and potentially much higher.

It is also worth taking a look at the price predictions of the AI price prediction model for Near Protocol, Polygon (MATIC), Aptos (APT), and Chainlink (LINK).