Would Bitcoin Be Badly Hurt if Binance Goes Down?

[goldkingcoiner]

Binance would cause a crash in price due to FUD more than due to them selling their Bitcoin holdings, if they decided to sell them, which in the case of a legal lawsuit being lost or something similiar I guess they would have to.

But in the long term I would say Bitcoin is safe with or without Binance. There is absolutely no reason for centralized exchanges in the first place. They are just the poor-coiner's way of lazy Bitcoin purchasing/selling.

Nobody with a brain trusts the exchanges enough to even store their coin on an exchange.

I would not blink if Binance crashed tomorrow.

[Learn Bitcoin]

No matter what people say about the Bitcoin movement related to Binance. But, the market will be affected if Binance collapses. If 1000 Bitcoin buy or sell can move the market five to ten percent, imagine how much it will be affected when 0.6 million Bitcoin are on the move. The obvious thing is Bitcoin will recover eventually. Don't panic sell; you have to hold tight for a long time to recover the loss. Nobody knows how long it may take to recover the loss. But it won't happen overnight.

However, If I am not wrong, only Binance US was charged. The leading Binance platform is out of the control of the SEC. Most users are still safe as they (Binance) did not move their coins anywhere. But, if you are a Binance user, you should move your coins from Binance for security reasons.

[ultrloa]

Because the problem that Binance is facing is only for those in America. So it won't be a big problem. And fortunately now the issues have started to meet common ground because Binance and the SEC have made an agreement which has also been approved by the judge. And very coincidentally after this problem was solved then the world's big companies started to move (Blackrock & Fidelity) and are applying for spot Bitcoin ETFs in the US. 

Why not? There asset will be freeze if the case proceed so still there's a big impact it can cause especially when fud build up and for sure many people will bit it then start to dump their assets because they can't afford to see another heavy crash will happen. But still the same with other issues exist it will just be a short term cause of problem since binance can operate globally so for sure the same as what happen before price would recover after binance issue pass.

[sokani]

If Binance does not feel guilty and has not violated anything, then they have the right to defend themselves even if they have to hire a lawyer during the trial. Their success against the lawsuit has had a positive impact on the market where as of now the market has also shown recovery after the price dropped below $25k.

The fact is true that Binance or any other centralized exchange will be able to have both positive and negative impacts on the market. But I believe, the impact will not last forever because bitcoin has nothing to do with a centralized exchange. Exchanges are a facility for traders and investors to buy and trade assets, but exchanges are not the only way to trade bitcoins.

The SEC saga with Binance and other external factors are just stumbling block and they may temporarily try to influence the market price but Bitcoin keeps rising, and shooting for the skies. All those weak hands that didn't have faith in bitcoin when the price took a little dive to $24k, I wonder where they are keeping their faces now. Some persons panicked and sold off their asset. Today it hits $29k and it is retracing it step back to the $30k price mark. Bitcoin is one cryptocurrency that has proven itself over and over, and no government or entity can stop it or bring it to it knees. Binance can crash today but Bitcoin will still be standing, and It will keep rising like a phoenix from the ashes.

[sulendra12]

I really am no fan of Binance because I found their KYC annoying. What is not in doubt is that CZ is supposedly one of the most credible faces of crypto. How much harm do you think a Binance implosion would cause Bitcoin? Is the US a big threat to the coin market?

https://www.cryptoinfowatch.com/a-former-sec-official-said-the-binance-ceo-and-others-may-face-criminal-charges-soon/

It would be badly hurt in big scale because Binance is one of the most reputable exchange out there and if Binance goes down, Bitcoin's price would be dumped really bad. Even small exchanges could affect the price and imagine if Binance having the same fate as those? But in the end, Bitcoin's price will be recovering after whatever happens, it just takes time to recover.

[ElmedoRator]

I really don't think this will happen but seeing the recent FUD between the SEC and BinanceUS, I just think it is a form of more reasonable pricing, we all understand the story of the name Binance how popular they are in the crypto market so their attention and market share competition in this market will have to happen. Assuming the story leads to a negative issue like the cases from FTX or terra, if one of the largest cryptocurrency exchanges in the world, collapses, the cryptocurrency market will have a very strong move and can cause drastic swings in the prices of many cryptocurrencies. Some investors may panic and sell their cryptocurrencies, leading to a deep drop in the price of cryptocurrencies, then we can imagine the magnitude and scale of volatility many times over, and it will again take some time to recover everything. Of course, the market will continue to exist and develop over time, but that will probably be more unlikely, as we will see how things react in recent days.

[Halime Anatolia]

Because the problem that Binance is facing is only for those in America. So it won't be a big problem. And fortunately now the issues have started to meet common ground because Binance and the SEC have made an agreement which has also been approved by the judge. And very coincidentally after this problem was solved then the world's big companies started to move (Blackrock & Fidelity) and are applying for spot Bitcoin ETFs in the US. 

In My View, the impact of Binance going down on Bitcoin would not be significant as the issue primarily affects users in America. Fortunately, Binance has reached an agreement with the SEC, which has been approved by a judge, resolving the situation. Interestingly, following the resolution, major companies like Blackrock and Fidelity have begun to take action by applying for spot Bitcoin ETFs in the US. This indicates a positive shift in the market, suggesting that Bitcoin's prospects remain favorable despite Binance's temporary setback.

[ancafe]

It would be badly hurt in big scale because Binance is one of the most reputable exchange out there and if Binance goes down, Bitcoin's price would be dumped really bad. Even small exchanges could affect the price and imagine if Binance having the same fate as those? But in the end, Bitcoin's price will be recovering after whatever happens, it just takes time to recover.

If you pay attention to today's market conditions, there is an illustration of how bitcoin has experienced a gradual recovery from the SEC lawsuit against binance. The effect is only short term and I think bitcoin has gone through that process for now. Even though binance is a large exchange that has a good reputation, in reality not all of the impact that was caused by them made bitcoin corrected in the long term.

The loss you mean also doesn't have any effect when the user doesn't look panicked by the conditions that are happening, so that at the right time bitcoin has recovered as it has in the past few days. So this is an illustration, that when an exchange experiences the same problem, you don't need to worry too much.

[Blitzboy]

It would be badly hurt in big scale because Binance is one of the most reputable exchange out there and if Binance goes down, Bitcoin's price would be dumped really bad. Even small exchanges could affect the price and imagine if Binance having the same fate as those? But in the end, Bitcoin's price will be recovering after whatever happens, it just takes time to recover.

If you pay attention to today's market conditions, there is an illustration of how bitcoin has experienced a gradual recovery from the SEC lawsuit against binance. The effect is only short term and I think bitcoin has gone through that process for now. Even though binance is a large exchange that has a good reputation, in reality not all of the impact that was caused by them made bitcoin corrected in the long term.

The loss you mean also doesn't have any effect when the user doesn't look panicked by the conditions that are happening, so that at the right time bitcoin has recovered as it has in the past few days. So this is an illustration, that when an exchange experiences the same problem, you don't need to worry too much.

Despite impactful incidents like the SEC' clash with Binance, Bitcoin's mettle outshines. Given Bitcoin' intrinsic decentralized character that diffuses any single authority's control, its hardly a shock. Its crucial not to undervalue the power of perception and user confidence. As you accurately pointed out, the absence of widespread panic was instrumental in Bitcoin's value rebound, echoing the power of our collective faith in Bitcoin's robustness and potential.

However, I believe this highlights the urgency for definitive regulation. Addressing such predicaments in a structured manner could heighten Bitcoin's credibility. So, even as we commend Bitcoin's resilience, we must simultaneously advocate for a transparent, balanced regulatory framework that serves users and maintains market stability.

[smile1218]

It is difficult to predict the exact impact of Binance going down on Bitcoin. It is worth noting that Binance is currently one of the largest cryptocurrency exchanges in the world, and its trading volume accounts for significant portion of the overall cryptocurrency market. If Binance were to go down, it could potentially lead to a decrease in trading volume and liquidity for Bitcoin and other cryptocurrencies. This could also cause prices to drop in the short term, as there would be fewer buyers and sellers in the market. It is important to take note that the cryptocurrency market is highly volatile and unpredictable. There have been instances in the past where major exchanges have gone down or been hacked and bitcoin has still managed to recover and reach new all time highs. The long term impact of Binance going down on bitcoin would depend on variety of factors including the reason for Binance's closure and how quickly it is able to recover.

[ancafe]

Despite impactful incidents like the SEC' clash with Binance, Bitcoin's mettle outshines. Given Bitcoin' intrinsic decentralized character that diffuses any single authority's control, its hardly a shock. Its crucial not to undervalue the power of perception and user confidence. As you accurately pointed out, the absence of widespread panic was instrumental in Bitcoin's value rebound, echoing the power of our collective faith in Bitcoin's robustness and potential.

There are always those who play a part in creating unfavorable conditions in the market, the SEC and Binance are two examples that were able to play a state of panic on people investing and ultimately cause bitcoin to correct. But back again as I said, that this is only in the short term and the self-control of each individual involved in investing is very important.

However, I believe this highlights the urgency for definitive regulation. Addressing such predicaments in a structured manner could heighten Bitcoin's credibility. So, even as we commend Bitcoin's resilience, we must simultaneously advocate for a transparent, balanced regulatory framework that serves users and maintains market stability.

What kind of regulation is meant, apakah ini terkait dengan pertukaran atau apa? because I don't think bitcoin needs any kind of governmental or institutional regulatory framework to make it more independent. The resilience of bitcoin is precisely due to the absence of a regulatory authority so that people are free to control investments independently.

[umbara ardian]

It will be a crisis that will seriously affect the entire crypto market if Binance goes down. As we all know, CZ and Binance are powerful empires that have been around for quite some time in the cryptocurrency industry. And there are many people currently using Binance's wallet to store assets as well as daily transactions. So its collapse will deal a stronger blow than when we know that the top 2 FTX exchanges crashed in just a week and its consequences were huge. So the consequences affect both the negative and positive sides of crypto for people and make the crypto trend changeable.

[Wimex]

If we start to think, Binance was created years after bitcoin came to the fore, so if it disappears, many people will probably choose to use another Exchange that suits the needs of the users or simply create a new one that fulfills the same functions. and even with other adaptations…….However, studying the panorama a bit, I have been able to notice that this platform is one of the most used currently, it has come to gain great fame and a considerable number of users, so if considered that it would somehow affect the value of bitcoin, since despite the fact that this asset has no relationship with fiduciary monetary operations (for example, inflation), it is affected by demand, so if people (mostly inexperienced) goes into crisis thinking that it would be the end of bitcoin, the graphs will express low fluctuations.

[darkangel11]

It might create same affect as FTX did

It would not, unless Binance is found to be a scam like FTX. If Binance simply says they're shutting down, allowing people to withdraw their money, there's not going to be much damage.
Also, FTX happened in a bear market which multiplied the effect.
You have to realize that most bitcoin is currently held offline, so an exchange imploding can't have a long lasting effect on the price because it can't affect too many people. I, for instance, have 100% of my coins offline.

[Coin_trader]

It will be a crisis that will seriously affect the entire crypto market if Binance goes down. As we all know, CZ and Binance are powerful empires that have been around for quite some time in the cryptocurrency industry. And there are many people currently using Binance's wallet to store assets as well as daily transactions. So its collapse will deal a stronger blow than when we know that the top 2 FTX exchanges crashed in just a week and its consequences were huge. So the consequences affect both the negative and positive sides of crypto for people and make the crypto trend changeable.

I’m thinking the opposite. Maybe crypto market will experience price dip during the initial day prior to the announcement but Bitcoin will surely recover since it is not directly connected to Binance. If there’s any coin that will be heavily affected then it should be BNB and BUSD since that is their native tokens that value is based on Binance reserve.

In the scenarion that Binance will fall down. I believe all CZ and Binance asset will be frozen and that means there will be less crypto currency that will be circulating by the time this issue will happened. Binance hold a vast supply of crypto market and crypto will be less volatile without this tokens affectng the market.

[Sanitough]

Whether you like it or not, it's always a yes. Smaller hacked or shutdown exchanges always give a bad effect on the market, how much more on largest exchange?

Shutting down of binance is highly unlikely to happen ^{(for now)} maybe on their US based offices/market, but it doesn't speak the same on the rest of their offices/market. But obviously it will have a mid to high bad effect on the market for some time.

Bitcoin price has plummeted in just 24 hours when the FTX crisis has been known, so how much more if the same event will happen to Binance? Surely it will create a massive effect on bitcoin price, the market will definitely turn into a bad shape, hence weak investors will probably be in panic again. That’s the reality if Binance will be put in danger. Not only it’s own company will suffer, but also bitcoin price and the crypto market itself. 

[harapan]

I can't specifically say how hurt Bitcoin will be if Binance goes down, but it will be hurt, that's for sure.
I also do not think the price will be go lower than it did due to the FTX saga. The pressure will most likely come from the regulatory bodies, banks and all those against Bitcoin. They'll come to gloat and say "I told you so"

Bitcoin will survive without any exchange, both centralized and decentralized.
Saying Bitcoin will become non existence because a particular exchange went down, that's like saying the dollar will seize to exist if a particular bank goes down.

[darkv0rt3x]

I really am no fan of Binance because I found their KYC annoying. What is not in doubt is that CZ is supposedly one of the most credible faces of crypto. How much harm do you think a Binance implosion would cause Bitcoin? Is the US a big threat to the coin market?

https://www.cryptoinfowatch.com/a-former-sec-official-said-the-binance-ceo-and-others-may-face-criminal-charges-soon/

What means "hurt really bad"? You mean a price drop? Probably yes. But don't we already have that? Price drops and price rises? That's just called volatility. That's not that bad because sooner or later Bitcoin recovers! Never forget that has a finite supply coin, the long run tendency is a price rise! So, probably yes, there will be price drops. There will be many orders liquidated, but the positive aspect is that will clear some weak hand in the process!

[BenCodie]

I really am no fan of Binance because I found their KYC annoying. What is not in doubt is that CZ is supposedly one of the most credible faces of crypto. How much harm do you think a Binance implosion would cause Bitcoin? Is the US a big threat to the coin market?

https://www.cryptoinfowatch.com/a-former-sec-official-said-the-binance-ceo-and-others-may-face-criminal-charges-soon/

What means "hurt really bad"? You mean a price drop? Probably yes. But don't we already have that? Price drops and price rises? That's just called volatility. That's not that bad because sooner or later Bitcoin recovers! Never forget that has a finite supply coin, the long run tendency is a price rise! So, probably yes, there will be price drops. There will be many orders liquidated, but the positive aspect is that will clear some weak hand in the process!

Normal volatility is a little bit different to a large centralized exchange (or in the case of Binance, one of the largest crypto institutions that are still operating) being forced to close operations.

If Binance were to be closed, positions will be cancelled, not liquidated. In an ethically fine event, everyone can withdraw and the exchange will store or sell the excess...maybe, the price won't be drastically effected by this. However, that is a very idealistic view.

It has been reported that Binance have less reserves than exchange balances...this could mean five outcomes:
1. Binance somehow find the difference, buy crypto and allow the balances to be withdrawn.
2. Binance find a way to close without 100% of balances being able to be redeemed. Likely by selling, causing a market catastrophe, buying the difference.
3. Completely liquidating all crypto and paying everyone a share of the proceeds based on their percentage of total exchange balances.
4. Liquidating everything for fiat, strict withdrawal process and buying only when needed to process withdrawals.
5. Everyone gets BNB, all assets migrate to BNB, all reserves injected into BNB.

All seem unlikely, all are possible in the event Binance stop normal operations and need to close. One thing is for sure, it will cause unprecedented waves in the market.

[savetheFORUM]

If we start to think, Binance was created years after bitcoin came to the fore, so if it disappears, many people will probably choose to use another Exchange that suits the needs of the users or simply create a new one that fulfills the same functions. and even with other adaptations…….However, studying the panorama a bit, I have been able to notice that this platform is one of the most used currently, it has come to gain great fame and a considerable number of users, so if considered that it would somehow affect the value of bitcoin, since despite the fact that this asset has no relationship with fiduciary monetary operations (for example, inflation), it is affected by demand, so if people (mostly inexperienced) goes into crisis thinking that it would be the end of bitcoin, the graphs will express low fluctuations.

The fluctuations will definitely be bigger than how you are describing it, Binance is the biggest cryptocurrency exchange in the world right now, and I believe it wouldn't happen because the case that SEC is fighting against Binance isn't directly against Binance or CZ it's targeting cryptocurrencies that are being offered by the platform that SEC considers securities and they aren't registered with them, but if Binance collapses or goes down, we will see a big blow in the market for sure.

I know there have been rumors of cases against Binance and CZ before all this happened, but none of them were really proven to be true, so there is basically nothing so strong at the moment that can shatter the pillars of Binance that it has got all around the globe in the present time.