China Renaissance Plans $600M BNB Fund With YZi Labs Backing As BNB Price Hits ATH

Binance Coin (BNB) continued with its bullish strength that outpaced all other cryptocurrencies as it made a new ATH, two days after the crypto crash. On that note, a Chinese bank was planning to invest heavily in the altcoin, adding to the strength seen since the price surpassed the $1,000 mark.

The activity coincided with a spike in open interest (OI), with BNB leading all other crypto coins in this recovery. The involvement of China, though indirectly, contributed to this spike. As a result, the price of Binance Coin followed.

China Renaissance Bank to Buy $600M BNB Tokens

Diving into this impending massive investment in BNB, the China Renaissance Bank announced they were preparing a $600 million fund to invest in the token. As per a post by Coin Bureau on X (formerly Twitter), it is anticipated that YZi Labs will support this deal.

Despite the tightened crypto regulations in China, this indirect involvement indicated increased exposure. The bank was using strategic funds to make inroads into the digital asset arena. This indicated that China was scrambling to catch up with the United States, which had opened its floodgates for crypto adoption, now primarily used for payments.

Upon completion, it could be one of the biggest institutional stimuli to the BNB ecosystem in a long time. This may trigger a more solid bullish mood in the market. With that in mind, the impact was starting to reflect on the open interest front.

Impact of Institutional Involvement on Open Interest

The derivatives markets responded with signs of recovery following a week of volatility, with BNB in the lead. The general market experienced a sharp decline in OI between October 10th and 11th, but BNB remained stable. In fact, the discount attracted more buying interest from traders, despite the platform itself facing backlash.

According to Hyblock Capital data, the OI of BNB increased by 32% over the last two weeks, the largest rise among any major Layer-1 (L1) blockchain. This contrasted most coins that were continuing to be in the red or were taking a long time to recover the losses.

Solana (SOL), Cardano (ADA), Toncoin (TON), and Avalanche (AVAX) still remained in the negative territory.

This was in line with China Renaissance Bank’s plan to acquire BNB using a strategic fund indirectly. BNB was establishing dominance among L1 networks as a crypto investment.

The feeling was that traders were not merely sitting on BNB. They were placing long bets in an unstable market that was still seeking its footing. This rise in interest led to higher prices.

BNB Price Makes New High

On the charts, BNB made a new peak of $1,370, just two days after the biggest crypto liquidation of $19 billion. BNB’s price stabilized above the support it has been respecting since early July. The sharp drop saw BNB price dip below the $900 level.

The addition by the Chinese bank meant more capital would flow into the BNB ecosystem, especially the native token. The $1,400 target remained reasonable, but it was still uncertain if it would be hit this week. This followed as BNB dropped to $1,284 immediately after.

If the crypto market’s early-week strength doesn’t last, the move could be postponed. Altogether, the strength of BNB was underlined, with the altcoin being among the strongest since the beginning of July.