Why is the cryptocurrency market trending downward?

[Roggeredek]

It has been observed recently that the cryptocurrency market has taken a sudden downward turn. Is there a specific, concrete reason for this, perhaps some international issue? What is your take on it? If there isn't a clear reason, then why is this happening? Could this be a result of the panic caused by the Binance hack, even though it doesn't seem particularly significant to me?



Although Binance has stated that they have managed to recover 90% of the funds, it is difficult to determine what the actual situation is.

[Dr.Bitcoin_Strange]

It has been observed recently that the cryptocurrency market has taken a sudden downward turn. Is there a specific, concrete reason for this, perhaps some international issue? What is your take on it? If there isn't a clear reason, then why is this happening? Could this be a result of the panic caused by the Binance hack, even though it doesn't seem particularly significant to me?

Bitcoin opening price on 29th October (the day of the hack) was $81,200 but it fell to $77k+ after the news, so it's possible the fall was as a result of the hack or not.

Although Binance has stated that they have managed to recover 90% of the funds, it is difficult to determine what the actual situation is.

I haven't seen any news of such, but rather what they said is that they have replenished 90% of the stolen funds and the money which was used for the replenishment, came from their corporate treasury, part of their SAFU (Secure Asset Fund for Users) and part of their Futures Insurance Fund.

The stolen funds has not been recovered but according to current report that I read, they have frozen  ~$3 billion on-chain which was linked to the stolen funds.

[Roggeredek]

Bitcoin opening price on 29th October (the day of the hack) was $81,200 but it fell to $77k+ after the news, so it's possible the fall was as a result of the hack or not.

I had hoped that Bitcoin might be able to surpass 100K by the first week of November, but currently, there seems to be no chance of that happening within such a short timeframe.

I haven't seen any news of such, but rather what they said is that they have replenished 90% of the stolen funds and the money which was used for the replenishment, came from their corporate treasury, part of their SAFU (Secure Asset Fund for Users) and part of their Futures Insurance Fund.

The stolen funds has not been recovered but according to current report that I read, they have frozen  ~$3 billion on-chain which was linked to the stolen funds.

Yes, I reviewed the report again. you are right; I misunderstood, which is why I couldn't present it correctly.

However, it is true that this has had some impact on the overall market; otherwise, the market could have performed even better.

[Natalim]

However, it is true that this has had some impact on the overall market; otherwise, the market could have performed even better.

Don't talk about the whole market as it's all about bitcoin, altcoins will just follow. so if bitcoin goes down, altcoins go down harder, bitcoin pumps, altcoins follow as well. So it's always been that way at least 90% of the time based on what I've witnessed. With what happened, it's still fresh in the minds of some people, but as you can see bitcoin is slowly recovering, so if you are planning to make some quick profit, this could be a good entry point now.

[Dr.Bitcoin_Strange]

Bitcoin opening price on 29th October (the day of the hack) was $81,200 but it fell to $77k+ after the news, so it's possible the fall was as a result of the hack or not.

I had hoped that Bitcoin might be able to surpass 100K by the first week of November, but currently, there seems to be no chance of that happening within such a short timeframe.

The chance of that happening is not completely zero, perhaps November just started. When Bitcoin became bullish in August through September, one would have thought that price was going to get to $100k in that August or September month but it never did, meanwhile price went from $64k to $82k in just three week. What I'm just saying in essence is that, if price means to get to $100k this month, it will, the probability is not zero. But I doubt it happening, this binance hack might slow down the market or even cause price to fall more in this week.

[hugeblack]

It has been observed recently that the cryptocurrency market has taken a sudden downward turn.

This is to be expected; news channels, social media, and virtually all communication platforms have been talking about the Binance hack. It is only natural for investors to feel a sense of risk, leading them to withdraw their deposits or think twice before trading especially since the Binance hack is not yet over, and its short-term repercussions remain unknown.
Once a month or two has passed since this hack, and provided no major losses have occurred, the market will move on and forget about it.

[Japinat]

Although Binance has stated that they have managed to recover 90% of the funds, it is difficult to determine what the actual situation is.

You don't need to wait for it to fully recover because they can absorb those losses, as long as the exchange is back in business, that means they were able to survive the hack. So the downward trend now might end anytime soon, and watch how the market will bounce back after days of red due to that Binance hack news.

[Botnake]

If there isn't a clear reason, then why is this happening? Could this be a result of the panic caused by the Binance hack, even though it doesn't seem particularly significant to me?

Actually there are several factors why bitcoin and the crypto market seems off these days. But the very first reason is due to Binance hack where billions of funds are stolen that led to some investors to panic sell, and that affect the price of bitcoin and the crypto market itself.

Another one is the massive long liquidations that led to force liquidation worth billions of dollar specifically those leveraged, long positions in the market.

However, bitcoin managed to recover easily, we just have to wait for days and bitcoin price will pass $80k again.

[KiaKia]

Bitcoin opening price on 29th October (the day of the hack) was $81,200 but it fell to $77k+ after the news, so it's possible the fall was as a result of the hack or not.

I had hoped that Bitcoin might be able to surpass 100K by the first week of November, but currently, there seems to be no chance of that happening within such a short timeframe.

I haven't seen any news of such, but rather what they said is that they have replenished 90% of the stolen funds and the money which was used for the replenishment, came from their corporate treasury, part of their SAFU (Secure Asset Fund for Users) and part of their Futures Insurance Fund.

The stolen funds has not been recovered but according to current report that I read, they have frozen  ~$3 billion on-chain which was linked to the stolen funds.

Yes, I reviewed the report again. you are right; I misunderstood, which is why I couldn't present it correctly.

However, it is true that this has had some impact on the overall market; otherwise, the market could have performed even better.

Don't give up, 100k is still going to happen anyways, the perfect timing is what I can't promise anyone and also, I knew that the Binance incident isn't the Bitcoin bottom, anyone saying such don't know how possible 69k is right now..

Why worry about it all when you can just keep buying some percentage every week or month? bitcoin is still bitcoin, what got hacked is a crypto exchange not Bitcoin.

I don't get why people are overreacting to this, the market will bounce back when the time is right, keep buying more Bitcoin to your bag and wait patiently.

[tygeade]

Although Binance has stated that they have managed to recover 90% of the funds, it is difficult to determine what the actual situation is.

What you are expecting? Binance managed to recover their funds, let's take back bitcoin to Wednesday's price level? No, it is NOT a give and take type of deal, no market is working like that. Market reacted to the news of one of the biggest service provider of crypto space and when there was lesser damage, market will take its own time to recover.

Simply, we need another good news to jump back to previous level or else need a heavy buying to restore the market. Still, market sentiment must have been restored after Binance's announcement of recovery so we can expect bulls get back to action by Monday onward.

[Pandu Geddon]

We cannot just look at the amount of loss from the impact of the hack. The bigger impact is actually the attitude of investors and major traders on the exchange. There is a tendency for fund withdrawals to occur and traders to stop their trading activities. The effect may not only be on the related exchange, but more broadly it can certainly cause concern for traders and investors. But I am confident that the situation will soon pass.

[General_Bitcoin]

I do think that the Binance hack has created a lot of fear, however it is not entirely to blame for the market falling. Often times you will see the market being sold off so negative news will make it fall. Profit taking and leveraged liquidation will also cause the price to go down.
 It’s very common to blame one thing for the market falling but there can often be more than one reason behind it. We should see how the market reacts over the next few days.

[Awaklara]

I don't get why people are overreacting to this, the market will bounce back when the time is right, keep buying more Bitcoin to your bag and wait patiently.

Overreactions occur because what happens is beyond expectations. Previously, we were confident that we had left the bearish market behind, and price movements were increasingly positive. But the current situation may disrupt the plans that some investors had made. 

In any case, what happened was a major exchange hack. It certainly raises concerns among users, especially for those who have assets on the exchange. They are seeing a real risk.

[CryptoBuds]

If there isn't a clear reason, then why is this happening? Could this be a result of the panic caused by the Binance hack, even though it doesn't seem particularly significant to me?

Actually there are several factors why bitcoin and the crypto market seems off these days. But the very first reason is due to Binance hack where billions of funds are stolen that led to some investors to panic sell, and that affect the price of bitcoin and the crypto market itself.

Another one is the massive long liquidations that led to force liquidation worth billions of dollar specifically those leveraged, long positions in the market.

However, bitcoin managed to recover easily, we just have to wait for days and bitcoin price will pass $80k again.

Truth is, market's been all over place the whole of Oct, and Binance incident only added to the mess.

Everyone kept expecting uptober to pump. But as we have seen, there was barely any meaningful upside. Instead, we got correction and sideway. BTC even dipped below $80k at one point.

OP's question? That is just how market works. It is unpredictable and volatile. It doesn't go up in a straight line, so we shouldn't be shocked when it doesn't pump the way we expected.

[perfect999]

Everyone kept expecting uptober to pump. But as we have seen, there was barely any meaningful upside. Instead, we got correction and sideway. BTC even dipped below $80k at one point.

Because, we are going to end the year long bearish trend and most people are expecting the bear trend to fall shorter than usual as per the 4 year cycle. I as well have been expecting bulls to dominate because this bearish trend started easier than all previous cycle and with same logic it may end earlier than all previous cycle but as usual market is the final winner and keep us at check with no clear indication.

I am expecting that we are not going to have another strong bearish wave but only bullish to sideways movement only from here for the remaining months of this year. So, I am not seeing the bitcoin market in downtrend but an usual volatility due to binance hack. Keep on doing DCA will help to convert the current dip as an another opportunity.

[Big Dirams]

I do think that the Binance hack has created a lot of fear, however it is not entirely to blame for the market falling. Often times you will see the market being sold off so negative news will make it fall. Profit taking and leveraged liquidation will also cause the price to go down.
 It’s very common to blame one thing for the market falling but there can often be more than one reason behind it. We should see how the market reacts over the next few days.

Of course this market drops isn’t something caused by a single factor alone even if the factor of the hacking is the sole reason but it isn’t the only reason alone, there are other smaller effects too that cause this market crash and it was all because of the hacking.
A lot of scared traders and investors have let emotions take over them and push them into making decisions of securing what they have left and not allow any hacks of exchange allow them lose what they have in such exchanges. This Binance hacks have been of good example to others exchanges and it have been of an eye opening to some holders.

[CucakRowo]

However, it is true that this has had some impact on the overall market; otherwise, the market could have performed even better.

Sure.. this was the biggest hack in crypto history, so of course it's gonna hurt the market as a whole.

But market doing even better without it? Who's to say. That's just a what if

Price gets pushed around by all kinds of stuff and most of it is way out of our hands. Nobody can tell how any of it plays out, the crystal ball's out of stock.

So you can't pin every market move on a single event.

[Zoomic]

We're still asking questions on why the crypto market is trending downwards after an over $6 billion hack was reported because the market has really matured and strengthened with large liquidity especially in Bitcoin.

The news of a $6 billion hack is the kind of headline that would have easily crashed the market by 20% to 30% before the arrival of recent ETFs and widespread institutional adoption. Unlike what we used to see before 2021, the market seems to have grown past sharp deep crashes, that's why we're still asking questions.

[Jegileman]

Bitcoin opening price on 29th October (the day of the hack) was $81,200 but it fell to $77k+ after the news, so it's possible the fall was as a result of the hack or not.

I had hoped that Bitcoin might be able to surpass 100K by the first week of November, but currently, there seems to be no chance of that happening within such a short timeframe.

The chances of that happening is still the same because we are still in the first day of the month. November is still new and the market direction for this month cannot be ascertained by just today. If that’s what you hope for, there is a high chance we are going to see that happen. Bitcoin can change its direction in just a matter of time and this is something we have observed in the past from the market. As much as I don’t see the bitcoin market heading towards $100K this year, I feel it will recover from the recent drop in price that has just occurred in the market.

[Hamza2424]

I haven't seen any news of such, but rather what they said is that they have replenished 90% of the stolen funds and the money which was used for the replenishment, came from their corporate treasury, part of their SAFU (Secure Asset Fund for Users) and part of their Futures Insurance Fund.

The stolen funds has not been recovered but according to current report that I read, they have frozen  ~$3 billion on-chain which was linked to the stolen funds.

Nice explanation, bro. The 90% replenishment OP was talking about is the one they managed through their SAFU and their own funds.

They have successfully frozen 51% of the total stolen funds and recovered around $2.72B, but they definitely don't have it back in their wallets yet. But it will happen soon.

It's good that they have already opened withdrawals in phases. They are taking every step with precaution, so they are already doing great so far, and their customers are more than happy.