Will the Binance & polymarket attacks crash the crypto markets and stock markets

[philipma1957]

So Binance crushed for billions and now polymarket hacked.  will this crash both crypto and stocks?

I said yes.

here is polymarket info

https://x.com/PolymarketTrade/status/2115874609014726842

[EL MOHA]

I have voted for ‘not sure but will watch like a hawk’

This is because I don’t think the market usually reacts so bearish anymore to this things again like in the past. For example it’s almost 18 hours since the binance and polymarket hack has happened and the market hasn’t reacted so badly to it. With the amount in question for this binance hack which is arguably the biggest hack in exchange or even crypto history one should be expecting prices going down like -10% since it happened.

In the past like the FTX crisis it was recorded that it caused the market so much fear that it plummeted the market, but now we have seen the market staying strong after numerous repeated occurrences of hacks from cold card hard wallet hack to bitget hack to ledger supply chain tampering to now binance hack all within 60 days yet the market is still this strong. I am not sure I expect a huge bearish trend again.

[adultcrypto]

I don't think these attacks have as much impact as expected. I was expecting the crypto market to crash so hard after the Binance hack since Binance is one of the major and biggest exchange but the market responding only slighting and as I'm typing, a correction of the fall is already setting up. Furthermore, the polymarket hack has no connection to neither the crypto market nor the stock market, it is just like one of the hacks of the casinos we have experienced.

[Slow death]

I voted for the option that only cryptocurrencies will collapse. Yesterday, the price of Bitcoin was on the verge of breaking through $81,000 with $87,000 likely being the next target but then came the bad news about a hacker stealing funds from Binance, which caused the price to drop to $77,000. For the time being, withdrawals on Binance are unavailable; I only see an option to deposit, not to withdraw. Once withdrawals are re-enabled, we will likely see further price declines as people panic-sell in order to cash out, pushing the price down to even lower, more problematic levels. By the time this incident is forgotten, the price will already be low, and it will take time to recover. Unfortunately, it seems that every time the price tries to climb above $88,000, something major and unpleasant happens.

[Lucano]

This will have a huge impact, the impact we won't feel now, hackers won't sell it all for now, but slowly large cells will occur. The speculation is that we will see the market will slowly decline, it will be difficult for the market to recover, investors will also slowly sell their holdings which will cause the market to weaken in the medium term.

[Mrbluntzy]

This is because I don’t think the market usually reacts so bearish anymore to this things again like in the past. For example it’s almost 18 hours since the binance and polymarket hack has happened and the market hasn’t reacted so badly to it. With the amount in question for this binance hack which is arguably the biggest hack in exchange or even crypto history one should be expecting prices going down like -10% since it happened.

I think the impact is already telling on the market, price has dropped by more than 4% in the last 24hrs, the impact is not actually expected to be the same as years back when Bitcoin was still growing but still, the crash will be felt, Bitcoin was just recovering to $82k this week but crashed to $76k today, if not that this hack happened, it probably would have continue going up. There is still panic selling, even though it has not dropped to -10%, don't think it might not happen.

[Oshosondy]

I think Polymarket should be left out of it.

I do not think Binance attack is the reason for the fall of stocks, but it is the reason for the fall of cryptocurrencies. There are other reasons for the fall of stocks. This is according to what I have been seeing online about it. I do not know much about stocks, but I know their recent stocks price fall is not because of Binance attack.

About your question, I do not know. But I think bitcoin will still fall a little and likely go below $70000 once more. Bitcoin is not going below $60000. There are strong supports that have to be broken. I only guess this, I may be wrong.

[pooya87]

Didn't the market already react? I think that's all the "crash" we're going to see in reaction to this altcoin exchange's hack.

From what I've seen during panic sells in similar incidents in the past, I can say that the crash begins before the news comes out (those with insider information sell at highest price) then the news comes out and panic sellers hit the exchanges to panic-sell their coins in waves after waves creating an avalanche effect that crashes the price.

In case of Binance hack, the news first came out yesterday evening (Oct 29) which means as I'm typing this we are roughly 24 hours later and we haven't seen any kind of "crash" or even a major panic sell which can only mean one thing: the market doesn't care.

The recent movements aren't even new. Let's ignore this news for a moment and "zoom out" to look at the charts...
We have been in a sideways market for about 5 weeks and price is supposed to be between something like $75k and $85k. Testing the upper bound and then testing the bottom bound. Rinse and repeat until one breaks and the next direction is formed.
Price has been going up until October 21 when we tried breaking $85k resistance but failed. So the second part of the "going sideways" trend started and price started dropping. So we can say that today's drop to $76.5k is not new, it is the continuation of the ongoing drop that started 8 days before the hack and we aren't even at $75k support yet.


The hourly chart is even more interesting. The red candle I highlighted is the time when the news about the hack came out approximately. That's the panic sell we have had so far and I dare say most of it (as well as the subsequent drops in the subsequent hours) is not because of that news. It's because the $80k resistance was broken and price went below it which activated a bunch of automatic sell offs (the Stop-Loss thingy traders use)



At this point if the market manipulations manage to artificially push the price below $75k then maybe we see a reactionary panic sell to "crash" the market.

[Asiska02]

This is getting close to 24 hours since the hack happened and until now, we haven’t been able to witness a significant drop in price with the amount in question. The market has shown to be more prudent than before because it has become even more matured and getting use to news like this as they happen.

Users will henceforth begin to chose multiple storage options to save crypto assets as all of them are not reliable again. An exploit in one of the saving options will not affect your whole wallet and will help to keep on a minimal loss in case such exploited assets in those wallets can not be recovered.

[JoyMarsha]

This Binance hack should be the biggest hack the crypto space has witnessed. Still surprised to see that no heavy dump has occurred in the market in the past 24 hours

I remember when FTX crash happened in November 2022, the way the market reacted to it was brutal, In the sense that every coin had a heavy loss on their price within few days because of people pulled their money from all exchanges.

This time around, it all feels like a hack of such huge amounts from Binance weren't taken away yesterday. This tell that the market have learned to be more prudent than before as Asiska stated.

[logfiles]

Bitcoin and the crypto market in general nolonger responds so badly to such hack news. If there is any drop it isn't really as bad as the FTX or Luna crush. We saw the market movement downwards but not as volatile as expected.
I believe the markets will just be fine. In fact, they may even recover by next week.

[Churchillvv]

Major and frequent hacks this days are becoming too much that the market which is the community will likely pay lesser fear to it, (since fear less to crash) so the price will go in an unstable direction but move back up to the price it was left before the crash.

Hence in all it’s a temporary crash that can occur and not a long lasting crash.

[decodx]

This Binance hack should be the biggest hack the crypto space has witnessed. Still surprised to see that no heavy dump has occurred in the market in the past 24 hours

I remember when FTX crash happened in November 2022, the way the market reacted to it was brutal, In the sense that every coin had a heavy loss on their price within few days because of people pulled their money from all exchanges.

This time around, it all feels like a hack of such huge amounts from Binance weren't taken away yesterday. This tell that the market have learned to be more prudent than before as Asiska stated.

There is still much we do not know about the collapse of FTX. But, comparing this hack to the whole FTX fiasco is like comparing apples and oranges anyway... FTX was a literal black hole of fraud where user funds were being actively gambled away behind closed doors. Total insolvency. Whereas a hack, even a massive one like this one, is usually just a liquidity hit or gets patched/covered depending on SAFU funds and reserves. and in general I feel like everyone knows CZ/or whoever is running the show now could take a bullet or two and keep going unlike poor SBF.

Plus, tbh, crypto markets are just numb to bad news now. We have seen many rug pulls, hacks and bankruptcies that people don't even blink unless their own holdings get frozen.

[knuckey]

The price crash is certain, this event is the biggest hack in crypto, the impact will be felt for those who are holding crypto. almost we will fly bullish but in this unexpected event it will be difficult for the market to recover, this event will cause mass panic, and buyer interest will decrease so we can be sure the market will be bearish

[philipma1957]

Nasdaq took a trillion dollars in price value drop after the hacks.

but that is only 2.5 or 3.5 percent drop in the two days.

We will understand the full magnitude sometime next week.  By Weds the 4th or Thurs the 5th

[DanWalker]

With the amount in question for this binance hack which is arguably the biggest hack in exchange or even crypto history one should be expecting prices going down like -10% since it happened.

The Binance incident could be considered the biggest hack in the history of finance overall, not just the biggest in crypto, based on the value of the assets stolen.

Nasdaq took a trillion dollars in price value drop after the hacks.

but that is only 2.5 or 3.5 percent drop in the two days.

We will understand the full magnitude sometime next week.  By Weds the 4th or Thurs the 5th

The stock market was already sliding before Binance got hacked. Nasdaq is down almost $5 trillion since the start of the month, and Chinese equities are even worse off, having officially entered a bear market.

The sell off is being blamed on AI hype cooling off. The main concern is that the massive amounts of money being poured into AI aren't generating enough returns to justify the spending.


https://x.com/KobeissiLetter/status/2116179386030342497

[philipma1957]

This theft is a pile on for a crashing nasdaq.

SO IT IS ADDING to it.

[pooya87]

Nasdaq took a trillion dollars in price value drop after the hacks.

Part of that dump in the US stock market is because the AI bubble is deflating (I don't think it is bursting yet) as people gave up hoping for good returns anytime soon.

Or perhaps this is part of the political war that is going on inside USA between different members of the ruling Epstein Class who are fighting each other over who gets more share of the power. Something that would make these "hacks" irrelevant or at the very least part of that ongoing internal conflict. I've seen others talk about it too:

[fullfitlarry]

I only follow crypto and so obviously, but looking at the price of Bitcoin going down hard to $77k, the negative news has as big impact on us. Nevertheless, it might go on in the next couple of days and I don't think that the effect will lasted that long.

We've seen worst with a lot of uncertainty, and I'm thinking this could be the black swan that we might see in every bear market. But at least the bottom is already in at $57k so I doubt that we will go that low with the Binance hack and Polymarket.

[GreatArkansas]

For me, it will not happen anymore, like the damage already done and what crash we experienced like less than 10% on crypto market after these hacks = it's already enough, because if yes, then the crash should happened immediately after these hacks, but it already did, it just that not huge which a lot of people expected and still complaining that the crash is still not enough.
And for the stock market, nah, these stock markets, especially if they have nothing to do with the cryptocurrency market, have their own game, so I can say crypto must be separated from this "crash".