Binance Coin (BNB) surged as traders and institutional desks reacted to former President Donald Trump’s unexpected pardon of Changpeng “CZ” Zhao, the Binance founder previously convicted of violating U.S. anti-money laundering laws. The move reignited optimism around Binance’s regulatory stability and sparked a wave of risk-on sentiment across the crypto market, where investors interpreted the decision as a political signal of renewed openness toward digital assets.
Market Reaction: BNB Extends Rally to Multi-Month Highs
BNB rose nearly 14% in the 24 hours following the pardon, briefly crossing $710 — its highest level since June — with daily trading volume exceeding $2.5 billion across major exchanges. The broader crypto market followed suit, with Bitcoin up 3% to $67,400 and Ethereum climbing 2% to $2,530. Analysts noted that BNB’s rally outperformed the broader market, suggesting targeted optimism around Binance’s leadership recovery and exchange resilience.
Derivatives data showed a sharp increase in open interest on Binance’s BNB perpetual futures, indicating renewed speculative activity. Funding rates turned positive across multiple platforms, reflecting bullish momentum among leveraged traders. According to Kaiko, BNB’s spot market depth improved by nearly 12%, underscoring greater liquidity inflows from institutional participants seeking exposure to the rebound.
Regulatory Implications: A Political Signal to the Crypto Sector
Trump’s decision to pardon CZ has stirred debate among policy observers and investors alike. Some view it as a pragmatic political move aimed at courting the crypto voting bloc, while others see it as a strategic nod toward reestablishing the U.S. as a hub for digital innovation. Market participants interpreted the pardon as an implicit easing of the regulatory chill that followed the Department of Justice’s $4.3 billion settlement with Binance in 2023.
For Binance, the development could accelerate its efforts to regain full compliance credentials in key jurisdictions, including the United States and the European Union. Although regulatory scrutiny remains, particularly from the SEC and CFTC, the perception of political leniency could improve sentiment across the centralized exchange sector, which has struggled with trust and liquidity fragmentation since late 2022.
Investor Sentiment: “Up Only” Narrative Returns
The psychological shift among retail and institutional traders has been notable. Crypto influencers and market analysts have revived the “up only” meme — a tongue-in-cheek reflection of investor confidence during bull phases. According to on-chain data from Santiment, social mentions of “BNB” and “Binance” jumped 280% in the 48 hours following the pardon, while BNB wallet accumulation by large holders (so-called whales) increased by 6%, signaling renewed conviction among long-term investors.
Portfolio strategists argue that BNB’s rebound reflects broader speculative enthusiasm rather than a fundamental shift in network adoption. Still, the optics of CZ’s legal vindication have restored a sense of continuity for the Binance ecosystem — a critical factor given its dominance in spot trading and DeFi integrations across multiple chains.
The Binance Smart Chain’s total value locked (TVL) also rose 9% week-on-week, according to DefiLlama, as yield farmers and developers interpreted the news as a sign of institutional stability returning to the ecosystem.
Outlook: Political Winds and Market Volatility Ahead
While the pardon has boosted sentiment, analysts caution that volatility could remain elevated as markets reassess the long-term implications for U.S. crypto policy. Trump’s action may embolden calls for regulatory clarity, yet it also underscores how political dynamics can abruptly shift sector narratives. For BNB, sustaining its upward momentum will depend on Binance’s ability to translate improved sentiment into consistent trading volumes, transparent compliance, and ecosystem growth.
As one institutional trader put it, “This isn’t just about CZ — it’s about the market testing how far optimism can stretch before fundamentals catch up.”
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