Potential Impact of Binance Collapse on Bitcoin ($BTC) Price

[ajiz138]

You're absolutely right, being cautious and vigilant is crucial. While there's no news confirming the Binance scenario, your analysis is grounded. A potential Binance collapse could indeed lead to market turmoil, especially for BNB and BUSD holders. Prudent to prepare for such scenarios and prioritize security.

I was wondering why you quoted me without including my link, is this a habit of yours? Honestly, I feel bad seeing quotes like this.
The security priority is to store in hardware wallets or hotwallets that have seed phrases, if you still store on exchanges then don't expect it to be safe even on Binance or other exchanges that have other security features.

[AnonBitCoiner]

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

Binance is no. 1 exchange in term of volume thats why if Binance faced any trouble then obviously we will see short term bad impact on htc price too but this impact will not remain for long time and Bitcoin will recover back after some time. previously many exchange faced trouble like FTX and impacted btc price also for months or two but after that recover with same speed. actually when big exchange collapse, it increase the fear in the market which force weak hand to sell btc in panic but with the passage of time every thing comes to normal and people use other exchange for buy/selling.

The security priority is to store in hardware wallets or hotwallets that have seed phrases, if you still store on exchanges then don't expect it to be safe even on Binance or other exchanges that have other security features.

Yes without seed phrase we have no controlled over our fund and we cannot say that our Btc is safe because anything happens with these exchanges and then we could not do anything if they stopped withdraw function. Its very bad habit that if someone want to hold btc for long term and still holding in cex. The first priority is to use hardware wallet and if not available then open source hot wallet like electrum is best option

[GeorgeJohn]

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

The thing is that binance hold the largest exchange across the world, but that doesn't mean that it will affect market, because the thing people does with binance is as result of exchange and their is no other things in bitcoin, we have so many exchange where you can exchange your coins to a traditional currency, so it doesn't mean that without binance exchange of cryptocurrency and especially bitcoin
and bitcoin  can't take effect, so many other exchanges are there to be use base on the country you find yourself.

[Rruchi man]

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

It will not be unexpected. FTX collapsed, Binance can also collapse, just as other exchanges can too. It is wise to expect these things so you continue with the consciousness of not storing your bitcoins in any of these exchanges no matter how solid they may look and also so you will not be surprised when they happen.

Binance is a big exchange, and it's collapse will surely have a huge effect on the price of bitcoins and all the things you have mentioned may happen including also affecting the trust that people who have little information about bitcoin have for it. But no matter what, it will not be the worse and bitcoins will surely bounce back and find a way to keep going.

Bitcoin is bigger than Binance and bigger than all other exchanges.

[coolcoinz]

It will be disastrous! Binance is the topmost crypto exchange with a daily volume of more than 4 billion dollars. If Binance gets into trouble, the Bitcoin will get into trouble as well. A this trouble will be much bigger than FTX or MTgox trouble. This might pollute the crypto market for next couple of years.

Let's just hope and pray that it doesn't happen!

I don't agree that it would be bigger than Gox.

In 2013 Gox was the biggest exchange by far and the market was much smaller. A much larger % of coins was on exchanges, ready to be traded, there was no HODL culture, like we have now, bitcoin wasn't recognized as a store of value, more like a novelty. It wasn't even a speculative asset and there were no laws and regulations regarding it. The impact of the collapse of the largest exchange was enormous at that time, especially that Karpeles was actively influencing the price of bitcoin and trying to earn back what he'd lost. Gox was like FTX, but with a much bigger impact as most people traded there at that time.

We don't know if Binance is involved in wash trading and if they have all the coins that they owe to people. There's a possibility they do. Chances are that even if they happen to shut down, they'll be able to make their users whole, unlike Karpeles that had lost most of the bitcoin before the exchange's collapse and was delaying withdrawals to keep his company going.

[Mr.suevie]

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

The thing is that binance hold the largest exchange across the world, but that doesn't mean that it will affect market, because the thing people does with binance is as result of exchange and their is no other things in bitcoin, we have so many exchange where you can exchange your coins to a traditional currency, so it doesn't mean that without binance exchange of cryptocurrency and especially bitcoin
and bitcoin  can't take effect, so many other exchanges are there to be use base on the country you find yourself.

Well for me I think it's quite the opposite because even if there are lots of other exchanges out there binance still hold a massive capacity when it comes to bitcoin transaction and trading that's why it's fall is definitely going to affect the bitcoin price market and also it's definitely going to cause a massive dip in the price. Ftx is not as merely big as binance but we all saw the impact of it's fall to the price of BTC last year.

[KingsDen]

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

Another FUD thread. Are there information about Binance now that is instigating fear in the news? Could it be another question whose answer everyone knows? We all know that even if all the exchanges collapse, it will just take small time for new exchanges to surface and continue trading. The effect will pull down the market price temporarily and everything will normalise with time.

The advice that people should avoid keeping huge amount of money on the exchange is loud to the hearing and understanding of everyone, but the will to put the advice to practice is where the problem lies

[Zlantann]

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

Binance is a major player in the cryptocurrency space, so its fall will affect the price of all cryptos. It will promote FUD and make investors lose confidence in the sector. But Bitcoin doesn't depend on exchanges for its smooth operations. One can have access to Bitcoin without these exchanges. So It will affect the price of Bitcoin for a few months and the market will gradually recover afterward. But one of the benefits is that it will promote the spread and adoption of decentralized platforms.

Is there any current issue ongoing with Binance of which I am not aware of? Because IMO there are small cases ongoing with Binance which are not that big enough to worry about because other than this exchange all other consisting exchanges are also facing many cases.

Don't believe funds are SaFu, or that binance is too big to fail and this is only fud, the centralized exchanges and earning and lending platforms that have collapsed in recent events also called everything fud, until they actually collapsed and people who were exposed to them lost a lot of money. I am not saying that i know for sure that Binance will bite the dust, but the people holding their funds there should move it into self custody. Even if Binance isn't going to collapse, not your keys is not your coins.

Nobody expected that FTX will collapse because there was no sign of such an occurrence. Don't also forget that these exchanges keep their financial transactions secret and their entire audit reports are not made public. These platforms are controlled by individuals who can make financial errors. And a single management error can wrench or collapse an assumed strong exchange. As much as I know, no exchange is infallible, so we should take necessary precautions.

[Z-tight]

Nobody expected that FTX will collapse because there was no sign of such an occurrence.

This is not true, before ftx collapsed there was rumors that they were insolvent and during that period cz liquidated the ftt tokens that binance were holding, it was almost obvious that ftx was going to collapse, but everything was called fud. There was even a thread in this forum telling people to withdraw their funds, but many people didn't believe it; you should check it out: https://bitcointalk.org/index.php?topic=5419710.msg61252515#msg61252515

Don't also forget that these exchanges keep their financial transactions secret and their entire audit reports are not made public.

It doesn't matter, even if they decide to declare proof of reserves or not, what you need to understand is that most centralized exchanges operate with a fractional reserve system.

These platforms are controlled by individuals who can make financial errors. And a single management error can wrench or collapse an assumed strong exchange.

I don't call it errors, they use customer funds for risky businesses, trading and gambing, that is how fractional reserve works, so they are just one big loss away from losing people's funds and going insolvent. Nobody should believe that any exchange is strong, withdraw your money into your self custody wallet.

[Nwada001]

Not just Binance, but I believe any crypto exchange that is popularly used by traders and has a high trading volume above $1 billion can, at some point, break down the crypto market and cause it to drop at least for a certain number of days.

And Binance failing today means most crypto will liquidate, as there are so many coins listed that their major volume is on both BNB and BUSD, which are the two major tokens of the exchange, and the exchange failing means those coins are going to experience a drastic fall in price, just as what happened to Luna stablecoin will likely happen to that of BUSD, as the major reason the BUSD is retaining its value against the dollar is because the exchange has enough liquidity to back that up. So for Binance to fall, everything under them is going to lose value, and that is going to cause a great loss on the crypto market and a lot of volume will be removed from the market.

[Woodie]

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC?

I think we have seen this attack happen on Binance one too many times concerning regulation etc, and this has always left a mark on the markets and leaving the markets in the red thanks to the influence they have on it. And if we want to see growth of the crypto markets, trouble shouldn't come looking for any of the top exchanges!!!

Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

Of course it will rattle the markets and not affect bitcoin price only! With how these go, am thinking maybe if we ignore or kick out regulation we can do better... but then again regulation could give the cryptospace the exposure it needs to expand and it's really a situation of being stack between a rock and a hard place...we still need regulation after all which Bitcoin is known to evade 

[Wimex]

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

Would it shake market confidence and affect $BTC?

If something were to happen with the Binance platform, you can simply choose to use other wallets to store bitcoin, and yet nothing guarantees that the same will not happen to these, that is, that at some point they will fail or be discontinued, it is That is why it is better to look for alternatives with more reliable characteristics. It is also true, as many say, that this event probably does not affect the market directly or in an exaggerated way, it may cause a certain downward movement, but it is not something that will affect that much. , since it is possible to recover quickly. Now, I am sure of something, and that is that the users who placed their trust in storing their assets in that specific wallet, if it affected them directly, because what can happen in this case is that everything they stored there ends up frozen, in short...lost, with the only alternative to start over. It is for this reason that most advise not to have all the assets in a single wallet, to protect yourself from such a situation and not run out of any capital.

[PX-Z]

It will be a catastrophe for sure, worst than FTX incident. Not just in crypto space but also on other company where binance invested, there will be lot of company who file bankruptcy due to that. I only say it on the market, regarding your holdings there, better to move your funds if the situation is getting worse.

[Darker45]

Binance is an influential player in the crypto industry, so I guess its collapse will have a detrimental effect on Bitcoin's price. However, this will all be temporary. Bitcoin will eventually recover. Binance isn't Bitcoin.

And since there are already precedents, this collapse won't be as shocking. Mt. Gox collapsed. FTX collapsed. Many others collapsed. There isn't a crypto exchange that's too big to fail. We've known that at least.

On the other hand, the collapse of another giant centralized platform should bring precious lessons. Whether we learn these lessons or not doesn't matter. It will forever stay as a reminder. Self-custody is always the best option.

[wxa7115]

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

The impact will be huge, even if Binance is not as dominant as Mt Gox was at the time, Binance is more than just an exchange, as binance also has its own coin and their own stable coin as well.

So the fall of binance will have huge implications for this market especially altcoins, so I would expect a generalized drop at that point and a loss of confidence we have not seen since the crypto winter, also I think it is possible governments around the world will try to get the collapse of Binance to coincide with the upcoming bull run as a way to hinder this market as much as possible.

[Kiedx]

If Binance were to shut down completely, it would have a significant impact on the crypto and bitcoin markets, as well as on the millions of users who rely on the exchange for their trading and investing needs. Here are some possible consequences of a Binance shutdown:

[armanda90]

Generally, Bitcoin will get impact with any exchange got collapse based on what happen during FTX exchange have been scam last several year and bitcoin fell down drastically.  But I doubt with Binance as number one of cryptocurrency market will get collapse like FTX because they operation for long time and impossible will get the same thing like FTX. As usual, Bitcoin depend on good or bad news will make price up and down, exchange market is the most important part for bitcoin when getting good news will up to higher price but when any exchange get problem or collapse its right moment for selling bitcoin assets and buy back later with lower price.

Can't imagine what happen later if Binance as top global exchange around the world get collapse for huge impact with bitcoin price, get chance drop more than 10% if Binance indicate will collapse although its impossible thing.

[Stable090]

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC?

If Binance collapses, it’s really going to affect the crypto market in general. We are going to see a dump, and that will put an end to some altcoins. We all know Binance to be a popular exchange, so if Binance collapses, the bitcoin price is going to dump, but I'm sure it’s going to be temporary, and with time, the bitcoin price is going to bounce back. But if Binance crashes, some altcoins might be able to survive it, while most altcoins are going to crash with it. That’s why altcoin investments are kind of dangerous, if there is bad news, they can crash at any moment. Also, leaving bitcoin on exchange is bad, if the exchange crashes, you are losing your money. It’s better to keep your bitcoin out of exchange.

[Afnan_faizah]

I hope there is no bad thing happen to binance, it seems that if binance is collapse then it will become really bad sentiments for bicoin market. Although the market will recover again but it might affect the public trust, I realy hope that people out there don't hear any bad news about criptocurrency.

[DapanasFruit]

All because Binance has already built an empire encompassing the global market for cryptocurrency. its influence and dominance should never be understated...this is just like the dominance of Meta of Mark Zuckerberg in the social media space. Because Binance is involved in heavy trading for different digital assets, its possible fall or collapse can certainly push the crypto market down just like what happened during the time of Mt Gox. It  would be a confidence-shaking event and is something that we should never miss to come. However, it will not mean the end of everything as cryptocurrency can certainly survive without it and there will be competing players to fill in the void.