What’s behind the ‘Boycott Binance’ move on X and will it push BNB below $500?

• Binance records $2.8 billion in Bitcoin outflows on Tuesday, the third largest exchange flow this year.
• The crypto exchange is facing criticism for allegedly confiscating funds from Palestinian users.
• Binance denied the reports and stated that only a small number of accounts were restricted due to illegal transactions.

Binance, one of the largest crypto exchanges by volume, has recently faced criticism on social media platforms such as X. Crypto traders criticized the exchange for allegedly confiscating the assets of Palestinian users.

The exchange denied the reports and provided an explanation for the restriction imposed on certain user accounts, according to a Cointelegraph report.

Cryptocurrency traders criticize Binance for allegedly confiscating funds from Palestinian users

Crypto Twitter is trending with the hashtag “Boycott Binance” as traders urge others to withdraw funds from Binance. The stock market saw its fourth biggest one-day exit since 2024 on Tuesday, August 27.

Nearly $2.8 billion in Bitcoin, over 45,000 BTC, left Binance on August 27 as users rallied against the exchange for restricting user funds and Palestinian access. The stock exchange clarified its position on the matter and denied the allegations.

In a Cointelegraph report, Binance said the move to the restriction was made due to illicit trading activity in some user accounts.

Binance told the company that the exchange’s restrictions affected an “insignificant” number of users and said:

There have been some incorrect statements about this. Only a small number of user accounts linked to illicit funds were blocked from trading.

The exchange did not share details about the number of users affected or when the restrictions were applied.

BNB is at risk of falling below $500

Binance Coin (BNB) is in an uptrend as seen on the daily BNB/USDT chart. The exchange’s native token could extend losses by nearly 6% and drop to $499, a key level for the asset.

BNB could sweep liquidity into FVG between $497.70 and $498.70. Moving Average Convergence Divergence (MACD), a momentum indicator, shows that the MACD line is crossing below the signal line, which means that the underlying trend could turn negative.

BNB/USDT daily chart

A daily candlestick close above $558 could invalidate the bearish thesis and BNB could rise towards $560.90, the 50% Fibonacci retracement of the decline from the June 6 high of $721.80 to the 5 low August of $400.