The most stupid dip in Bitcoin's history - and why we can be happy now

[MarjorieZimmermanGinger]

If Binance bought FTX, it would have become an enormous, almost monopoly-like, dominant exchange player. Binance would have become the new MtGox. And we all know what's wrong with that. They become single points of failure, and if they fail, then the ecosystem suffers much worse than a day the price tanked 15%.

The owners of Binance have the power to build more than FTX, why don't they do this instead of having to buy FTX, there is literally a much bigger issue yet to be uncovered, so Binance was forced to acquire and sell all of the FTT tokens. Or it could also be that Binance thinks that FTX is not running according to the target they set, so this cancellation is considered the right step for Binance.

It will be difficult for the exchange to restore trust, if the problems at hand are widespread and for this reason FTX will have a hard time restoring reputation.

[1714677986]

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[1714677986]

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[batang_bitcoin]

With all of these exchange coins and native tokens, they can be dumped like shit in an instant. I just hope that people will learn the importance why most of the people here are suggesting to get bitcoin as much as they can.
In the end, us, who understands the importance and supremacy of having and owning bitcoin will still be the ones that will laugh at the end when most of them collapses and turns from great into lesser value.

[Yatsan]

If Binance bought FTX, it would have become an enormous, almost monopoly-like, dominant exchange player. Binance would have become the new MtGox. And we all know what's wrong with that. They become single points of failure, and if they fail, then the ecosystem suffers much worse than a day the price tanked 15%.

The owners of Binance have the power to build more than FTX, why don't they do this instead of having to buy FTX, there is literally a much bigger issue yet to be uncovered, so Binance was forced to acquire and sell all of the FTT tokens. Or it could also be that Binance thinks that FTX is not running according to the target they set, so this cancellation is considered the right step for Binance.

It will be difficult for the exchange to restore trust, if the problems at hand are widespread and for this reason FTX will have a hard time restoring reputation.

That's what happens if you are a bigger company. It would be more efficient to buy an existing business perhaps, 'coz it already has a name and target market population than to start a new one from the scratch right? Restoring the trust from FTX alone would be really difficult but if it would be balanced by another credible exchanger, then things would be somewhat easier. Anything under a good 'name' would be influenced or shared with one's charisma of being one with the bigger business or trade name, as an example. Things might have changed for FTX if Binance had it first, but it could also be worse to both Binance and FTX if the issue came first. Therefore stopping the plan, would be a better preventive measure for Binance and this industry as well.

[Solosanz]

Actually if people can't withdraw their coins on FTX or any other centralized party that collapsed, why Bitcoin price decrease? it should be increase right since when people lose their coins, it will make the other coins will become scarcer. But since the price is continue to decrease, I think many newbies think Bitcoin isn't a safe currency and they panic to convert their coins to fiat. This make people want to sold, rather than hold, right?

[buwaytress]

Well, I do agree that most of these market-knee-jerk events have a positive undertone. Mt Gox taught people for the first time "not your keys, not your coins"... remember this was a time when even forum old hands like R. Ver was recommending exchanges to people. Bitcoin getting banned taught people to move to p2p. FTX and Terra taught people more of the same, Binance rejecting the suicide prevented a bigger monopoly yes...

But it was a negative reaction because when something implodes, the market reacts in proportion to exposure, as it always does.

Price, as we all know by now, in the immediate term, has little to no correlation with fundamental value.

[d5000]

For years people who criticized altcoins were branded as "maximalists" or "extremists". Time has proven that they were right, that the altcoin ecosystem, including exchanges, is unsustainable and does not produce anything useful. [...] We need to have exchanges that are purely Bitcoin exchanges, they would only deal with Bitcoin and fiat,[...]

I have some sympathy for your viewpoint, see this older thread (although I also recognize some few "good", decentralized altcoins, but 99,9% are shit).

And some solid, reliable, "only Bitcoin-to-fiat" exchanges would also be nice to have; I would also like (like I wrote in that thread) exchanges that only concentrate on coins which follow Bitcoin's model closely (no premine, no "team", no underlying business, no centralized PseudoDeFi etc.).

However, this particular dip had in my opinion not much to do with the altcoin ecosystem, in contrast to the Terra/Luna collapse. Basically it wasn't that different from the MtGox drama in 2014, and MtGox had only fiat and Bitcoin, no altcoins. It all comes down to bad accounting. The only part where altcoins played some role is that FTX did some auto-financing via the FTT token, and the FTT token collapse seems to have been the final blow for the business, although it may also have been the "bank run" the FTT token collapse and CZ's statements triggered. But the company was probably already having severe problems before.

What in contrast raises my eyebrows is the situation of crypto.com. If a big part of the holdings of that exchange (20%) is in a highly volatile joke coin (Shiba Inu) then something isn't right. And this has to do with the "altcoin inflation" problem. Of course, they may simply be holding the coins of their customers, i.e. SHIB holders could be "concentrating" on crypto.com, and who will hold SHIB in their non-custodial wallet? Probably close to nobody. But in the case of problems these coins will be probably become worth nothing.

[OgNasty]

The thing about this dip is that it wasn’t stupid. The people causing it were idiot liberals who belonged nowhere near a functioning business, sure. However, the dip highlighted an ongoing problem with these made up tokens people are using as sources of value. Binance is no different with BNB, so this crash could just be the warning that companies like Binance are still being held together by a wish and a prayer. If BNB starts diving, make sure you don’t have any funds on Binance or the next collapse will get you.

[redsun114]

With all of these exchange coins and native tokens, they can be dumped like shit in an instant. I just hope that people will learn the importance why most of the people here are suggesting to get bitcoin as much as they can.
In the end, us, who understands the importance and supremacy of having and owning bitcoin will still be the ones that will laugh at the end when most of them collapses and turns from great into lesser value.

We are crowded don't worry. There are a lot of people who understands how superior bitcoin is and buys and holds, there are over a million bitcoins all bought and held, all of them over a year at least and some of them over 5 year period, and still haven't sold.

So, even though we hear about all the crazy moves and crazy actions, believe me, there are a lot of silent people who are holding bitcoin for the long term and they are more crowded and they are richer combined because of that. That’s why it’s quite easy to forget sometimes all those people because they don't talk about how much they are holding, but all the losers from small altcoins do.

[carlfebz2]

The thing about this dip is that it wasn’t stupid. The people causing it were idiot liberals who belonged nowhere near a functioning business, sure. However, the dip highlighted an ongoing problem with these made up tokens people are using as sources of value. Binance is no different with BNB, so this crash could just be the warning that companies like Binance are still being held together by a wish and a prayer. If BNB starts diving, make sure you don’t have any funds on Binance or the next collapse will get you.

People should really still mind off about the probabilities and now this event or situation did open up again their eyes that its never been safe or there's no such thing about being safe when you do make use of these

centralized platforms which isnt really that something surprising but due to time where there are ones who do really forgotten about the risk and now here we are.Its not really a stupid thing because dips or dumps

like these which are attached about exchange issues whether its hacked or rug pulls or something like that, then its never been something new.It is really just the community
just reacted too much on how this issue did really make out such impact or on how the way things happen.

[BITCOIN4X]

People should really still mind off about the probabilities and now this event or situation did open up again their eyes that its never been safe or there's no such thing about being safe when you do make use of these

centralized platforms which isnt really that something surprising but due to time where there are ones who do really forgotten about the risk and now here we are.Its not really a stupid thing because dips or dumps

like these which are attached about exchange issues whether its hacked or rug pulls or something like that, then its never been something new.It is really just the community just reacted too much on how this issue did really make out such impact or on how the way things happen.

To be said to be the least surprising thing is probably right from your point of view. Hacking cases have the same impact, but not as great as the current collapse of a large company like FTX.

This should be something that can teach a lot of the self conscious about the safety of their funds just by having their own wallet. Now that quite a few FTX users are starting to feel the disappointment, it is possible that the same could happen for other exchange users in the future. So now people have to consider this: Reminder: do not keep your money in online accounts

[MarjorieZimmermanGinger]

That's what happens if you are a bigger company. It would be more efficient to buy an existing business perhaps, 'coz it already has a name and target market population than to start a new one from the scratch right? Restoring the trust from FTX alone would be really difficult but if it would be balanced by another credible exchanger, then things would be somewhat easier. Anything under a good 'name' would be influenced or shared with one's charisma of being one with the bigger business or trade name, as an example. Things might have changed for FTX if Binance had it first, but it could also be worse to both Binance and FTX if the issue came first. Therefore stopping the plan, would be a better preventive measure for Binance and this industry as well.

To me this is still quite doubtful, Binance wouldn't sacrifice its reputation and do a little thing like this, because I understand they are quite easy to make other than buying FTX. It's true, typical growing companies have a desire to dominate, but there is a negative side that they will get if they do this. Let's say Binance actually took over FTX, then what pattern can they do to restore FTX's reputation, since they had previously acquired and withdrew as Investors.

On the other hand, one would think that Binance is not credible in cooperating and should be wary of the exchange. (my assumption)

[adzino]

Shouldn't be calling it a stupid dip. I mean, yeah, the events that unfolded did have some good outcome, but still... we shouldn't be ignoring events like this. No matter how much decentralization we want, people will still use centralized form of services to buy, sell or hold their coin since people always looks for the easy way. Maybe eventually people will go for decentralized organization when crypto currencies and how they work are  more well understood by regular/common people. But for now, we can't expect centralized exchanges to collapse like this. But if we look at the bright side, more people are now aware of the dangers of holding coin in centralized wallet/exchanges!

[LogitechMouse]

Just what happened last week is a quick reminder to us investors that don't keep too much money on exchanges because things like this can happen.

Stupid dip or not for some, I always like dips. We always like dips. Intelligent investors like dips for an obvious reason. We know that sentiment plays a big role towards every market. Binance not buying FTX was a positive for some but for most, it wasn't because they thought that it would be a good thing if CZ buys FTX and instead of the sentiment being positive, it went the opposite. This just shows that there are some investors who still can't understand what's happening and what can happen in the future.

Well, the dip that happened is like "another opportunity" to buy at a lower price. We all know what will happen in the next years .

[Myleschetty]

Yesterday, in several legs, the Bitcoin price dropped from around 18.500 down to 15.600 $, marking a new low for this bear market.

I call this the most stupid dip in Bitcoin's history (or at least one of the most stupid ones, there may have been others), because the event that triggered it was actually positive.

Yes, the event that triggered the downtrend was positive but I don't think this is the most stupid dip in Bitcoin history because the historical price of Bitcoin shows the bottom price of the market during a bear to be always triggered by positive events.

According to the historical price of Bitcoin. In November 2013 when BTC ATH was $1242 the market downtrend to $340 price which was said to be the lowest market price since the year 2012-2013 and the event was triggered by the Cypriot financial crisis.

Therefore, I don't this current bearish is the most stupid dip, and the last time I checked until all 21 Million is mine the market will always come with an event that's more stupid.

[doomloop]

Yesterday, in several legs, the Bitcoin price dropped from around 18.500 down to 15.600 $, marking a new low for this bear market.

I call this the most stupid dip in Bitcoin's history (or at least one of the most stupid ones, there may have been others), because the event that triggered it was actually positive.

Yes, the event that triggered the downtrend was positive but I don't think this is the most stupid dip in Bitcoin history because the historical price of Bitcoin shows the bottom price of the market during a bear to be always triggered by positive events.

According to the historical price of Bitcoin. In November 2013 when BTC ATH was $1242 the market downtrend to $340 price which was said to be the lowest market price since the year 2012-2013 and the event was triggered by the Cypriot financial crisis.

Therefore, I don't this current bearish is the most stupid dip, and the last time I checked until all 21 Million is mine the market will always come with an event that's more stupid.

I think it was both negative and positive. Negative because it breaks the foundation that we already built for months. From $20k, we are down to $15k in just a couple of days but this is still positive because we can buy at this point. The op only said that this is "one of the most stupid" because he was aware that there are other events like this that cause the market to crash and one of it is already given by you and yes there will always be more to come.

Binance didn't buy FTX but they still have CoinMarketCap, Trustwallet and others. A lot of us still consider them as the monopoly of crypto. We are safe for now but not next time because I think binance will offer another exchange.

[batang_bitcoin]

With all of these exchange coins and native tokens, they can be dumped like shit in an instant. I just hope that people will learn the importance why most of the people here are suggesting to get bitcoin as much as they can.
In the end, us, who understands the importance and supremacy of having and owning bitcoin will still be the ones that will laugh at the end when most of them collapses and turns from great into lesser value.

We are crowded don't worry. There are a lot of people who understands how superior bitcoin is and buys and holds, there are over a million bitcoins all bought and held, all of them over a year at least and some of them over 5 year period, and still haven't sold.

So, even though we hear about all the crazy moves and crazy actions, believe me, there are a lot of silent people who are holding bitcoin for the long term and they are more crowded and they are richer combined because of that. That’s why it’s quite easy to forget sometimes all those people because they don't talk about how much they are holding, but all the losers from small altcoins do.

Yes, we're a lot but it's worrying that the thought of most that comes in on the market are thinking of not taking bitcoin because it's hell as expensive for them.
They already got the wrong thinking that it's expensive and doesn't see it for long term holding. Well, it's all about the experience and we all have experienced how great bitcoin is on these times to have and buy while it's dipping. It may tank and that's scary for them but that has to happen before it goes on another all time high. And, that's what most of them likes to see it only on the ATHs.

[STT]

Binance couldnt buy FTX as I understand it, it would have brought too many problems with it and also greater scrutiny for a very large market share.   Perhaps slightly comparable to Lehmans which in theory could have been bought out a couple times over but was denied over various arguments.     Its a test like all others, the price being higher comes with main market involvement which quite a few years back now we didnt have, simpler times.
  I think some would have preferred we never got all these larger funds with their big foot steps treading all over the place.  It goes with the price, the interference and big news events so we dont get to step away and argue against it now as its part of the price gain that comes with a wider broader population of users.


I wonder if we have resolved this recent action upwards, momentum wise we are trading below almost all the moving averages so it cant be called positive.  However we do have a higher low

[cryptomaniac_xxx]

^^ Yes that's why we can't blame CZ for not doing what they initially agreed upon with SBF.

Anyway, everything is clear now, it's already December and somewhat we have move over $17k and everyone now seems to accept that fact that another exchange has closed bringing the market it with. But bitcoin was able to recover and for sure there are buyers here when the price hits the bottom around $15k.

We should all look forward next year, and just continue to accumulate as much as we can and then prepare for the next bull run.

[OgNasty]

During times like this where there isn't money to be made trading, and mining is a losing venture, it displays how important it is to be diversified not just in your holdings, but also your revenue.  Setting up deals so that you receive some guaranteed BTC regardless of the exchange rate and also deals that pay you BTC in a set USD amount.  This is so that if the price goes up, you are rewarded handsomely by your BTC denominated revenue, but if the price goes down, you are also rewarded by receiving more BTC in your USD denominated deals.  You can accomplish this by offering services for a price in BTC, or goods with their price set in USD.  Things like signature campaigns also usually pay a set BTC amount or a set USD amount, so you can choose which you're missing and diversify that way.  This is the best way to defend against being sad about dips or missing out on price increases.

[NeuroticFish]

During times like this where there isn't money to be made trading, and mining is a losing venture, it displays how important it is to be diversified not just in your holdings, but also your revenue.

Even more, this kind of times show why one should not invest money he doesn't afford to lose or to "leave and forget".
People needing liquidity now and forced to sell their bitcoins will most probably sell at a loss.