Why Does $BNB Not Follow When Bitcoin Surges?

Although Bitcoin (BTC) and Binance Coin (BNB) both belong to the cryptocurrency market, their price trends do not necessarily rise in sync, especially in cases of Bitcoin surging, where BNB may not follow. The main reasons include the following points:

1. Concentration of Market Attention: Bitcoin is the leading coin in the cryptocurrency market, and investors often focus on and purchase Bitcoin first during a surge, leading market funds to concentrate on BTC rather than other coins. In this scenario, other cryptocurrencies may be temporarily neglected, resulting in them not necessarily rising.

2. Capital Flow: When Bitcoin rises, many investors and institutional funds tend to concentrate on Bitcoin, flowing out of other coins, especially those with lower liquidity. This 'vampiric effect' can lead to other coins (including BNB) performing flat or slightly declining when Bitcoin is strongly rising.

3. Differences in Use and Demand: BNB is primarily used for transaction fees within the Binance ecosystem, DeFi projects, and the NFT market, so its price is usually affected by the demand within the Binance ecosystem. Without new growth in ecosystem demand or positive news about Binance itself, the price of BNB may not rise significantly.

4. Market Sentiment and Cycles: Historically, BTC tends to lead the large cycles of the cryptocurrency market. After BTC completes a significant rise, excess funds in the market begin to flow into other mainstream coins and altcoins. If market sentiment turns overwhelmingly bullish, BNB may follow suit and rise.

5. Regulatory and Policy Factors: As the native token of the Binance platform, BNB's price is also influenced by the regulatory policies regarding the Binance trading platform in various regions worldwide. If Binance is affected by negative policies, even if BTC rises, BNB may perform poorly.

In summary, although BNB and BTC are both part of the cryptocurrency market, their price fluctuations are driven by different factors, so it is not uncommon for BNB not to rise when BTC surges.