BNB Retests $850 Support as Inflation Stokes Fed Rate Hike Fears
Binance Coin slid to $848.00, down about 2.14%, after the U.S. December inflation print came in at 4.2%—above expectations—and prompted a broad risk-off move across risk assets. The shock to the inflation reading pushed traders to price in a greater chance of additional Fed tightening, sending BNB back to test the $850 psychological support level. Trading volumes ticked up during the sell-off as liquidity thinned and correlation with wider crypto and equity markets increased.
The higher inflation figure matters because it raises near-term borrowing-cost risk for risk assets, which can translate into more volatility for BNB and other altcoins. Short-term traders will monitor whether $850 holds and watch macro headlines and Bitcoin’s direction for confirmation. For users of the Binance ecosystem, extended weakness could pressure token-driven narratives but may also create tactical buying opportunities if inflation data cools and volatility subsides.