Why is the cryptocurrency market trending downward?

[abel1337]

There's not other reason I can think of aside from the recent binance hack since it is the most impactful news we have before we experience the downward charts of bitcoin and other cryptocurrency. To be honest, I expect more panic and more dump after hearing the news but it fortunate that we currently see this kind of prices. Binance is considered as number one exchange and on top of it, it is the biggest crypto hack in history which can bring an extreme panic to us but after seeing the prices, it's not that bad as I'm expecting. Maybe because Binance reassures to their investor and users that it can absorb the losses because they have their company funds and SAFU that is intendly for a situation like this.

Hacking incidents were apparent this year so I think people are just used to in to this kind of thing, and with binance reassuring the public that they will cover the losses, it doesn't have much effect that we can consider this event a big crash.

The biggest exchange with the biggest stolen amount didn't give us the deepest crash we have in years.

[I_Anime]

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.

I haven’t seen any major issues that lead to the recent dump in market prices . The overall market structure/trend is screaming bearish . Sellers are ruling the market , though our may focus should be finding means to take advantage of the dump to increase our stashes . There will be alot of panicking in the market , and I believe the market will further dip due to the structure Is given ( just a speculation anything can happen) the market is unpredictable.



Fear is starting to overwhelm greed In the market . Well is normal , base on the recent market conditions there will be a lot of fear in the market , only those that understand bitcoin will see this as an opportunity to buy more .

[Hypnosis00]

Well, since Binance is the only major piece of information we have for now, let us see what happens once we fully resolve the issue. Then that is when we conclude how much of an impact it has on the current market situation. But I really don't think this will be enough to create panic selling.

Perhaps this is normal market behavior, and as you can see, when BTC's price drops, everything follows.

[nara1892]

In addition to the usual news, this decline was also caused by the hacking incident. This incident caused some investors to panic, and quite a few of them ended up selling their assets, which indirectly caused the market to plummet. but rest assured the funds that were lost or stolen were not investors’ money. The funds stolen came from the hot wallet used by Binance to cover transaction and operational costs. Even if any investors are affected, Binance will take full responsibility. Binance is one of the largest exchanges in the world, and my biggest concern is that public trust will inevitably decline.

[uneng]

Despite the hacker attack against Binance, I think the reaction of the market wasn't so negative like it could have been in past times... 6$ billion dollars is a very significant amount of money which had potential to crash crypto market to the bottom, but so far, we have seen only a minor dump.

I think the real question isn't why the market is downtrending, but why the market is so strong these days that even a theft of 6$ billion dollars isn't enough to crash it below 76,000$ line.

[henmark]

I think the real question isn't why the market is downtrending, but why the market is so strong these days that even a theft of 6$ billion dollars isn't enough to crash it below 76,000$ line.

Not why but how... lol. Yeah, how stronger crypto market is these days even a biggest exchange of crypto space hacked and lost $6 billion but market not reacted how it was when mtgox was hacked. This is showing that market is not controlled by few whales but working like how traditional markets do like in distributed way. This shows a significant leap of this space toward perfection.

We are at the critical point of bitcoin market where market sentiment is highly expected to change from bearish to bullish. Yes, bitcoin market may enter to bullish mode in this November to January of next year. So, the current scenario of trending downward may live short and we are in the course of testing new ATH by end of 2027 or just prior to that.

[GreatArkansas]

Despite the hacker attack against Binance, I think the reaction of the market wasn't so negative like it could have been in past times... 6$ billion dollars is a very significant amount of money which had potential to crash crypto market to the bottom, but so far, we have seen only a minor dump.

I think the real question isn't why the market is downtrending, but why the market is so strong these days that even a theft of 6$ billion dollars isn't enough to crash it below 76,000$ line.

This like single digit percentage of dump happened because of Binance Hack, the largest is the history is too small. It just shows how strong our market is right now.

Glad that we didn't even revisited the $60,000 = because if yes, I can buy more Bitcoin. Right now, for sure alot of traders still having hard time to trade because of these recent chops that caused by Binance hack, some might took this as advantage or build of their best entry.

[Floczy]

The hack may not be the specific reason behind the downtrend, people are being too sentimental about this, yes it can cause some sort of influence, but pointing it out as a reason behind lower price is not right, cryptocurrencies usually moves in this manner and there are many other major things that influence currency reactions whey higher that the recent hack.

Influence - yes
Possible reason for lower Price - No

[Captain Corporate]

I think the current fall was the direct outcome of the recent binance hack event. Binance was considered one of the best crypto exchange and almost everyone active here will have a binance account. The recent hack was really big but binance still assures that the user funds are safe and shall be returned. This is going to be a big loss for binance and they will have to observe it just to stay in the markets. If binance decides not to pay out the investors, the entire exchange might collapse.

I treated this as a major incident and for me, this is something that caused the market dump. I was worried if the price will keep dropping but somehow, price has stabilised as of now. I do not expect markets to recover immediately and I will follow news closely to know further movements because one thing I know for sure is that market is going to react to any major news related to binance.

[boyptc]

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

Prior to this hack, the price of Bitcoin was $81k at that time and when it's come down to this current price of $77k, but the lowest was $76k isn't just some impact.

It's a huge impact even looking at that price was just a couple of grand that was slashed before binance's hack has been in the news.

The market might even be better without the hack which is true. But as you can see, it's been stagnant from the $80k range and having hard time to break the $90k barrier.

[perfect999]

I think the real question isn't why the market is downtrending, but why the market is so strong these days that even a theft of 6$ billion dollars isn't enough to crash it below 76,000$ line.

Not why but how... lol. Yeah, how stronger crypto market is these days even a biggest exchange of crypto space hacked and lost $6 billion but market not reacted how it was when mtgox was hacked. This is showing that market is not controlled by few whales but working like how traditional markets do like in distributed way. This shows a significant leap of this space toward perfection.

We are at the critical point of bitcoin market where market sentiment is highly expected to change from bearish to bullish. Yes, bitcoin market may enter to bullish mode in this November to January of next year. So, the current scenario of trending downward may live short and we are in the course of testing new ATH by end of 2027 or just prior to that.

I think the times were totally different with Mtgox got hacked. Cryptos did not have that popularity back in times when mtgox got hacked. Mt was supposed to be one of the biggest exchange of that time and majority of crypto holders were active on Mtgox. The hack made a number of early adopters lose a chunk of money which also made them lose faith in bitcoins or cryptos for say. That caused the drop in price and markets were bleeding that time.

But now, Binance is not the only exchange chosen and we do have a number of other reputed options so the funds are well distributed among these exchanges. Any single exchange hack might make the price fall a bit but it will recover sooner than that.

[Fantazy999]

What a silly post, honestly!! The decline has been going on for a whole year now—simply because it’s a bear market... And why is that? Because it spent three years growing, so now it’s been falling for a year—the exact duration doesn’t really matter... plus, there still needs to be a period of consolidation at the bottom... What does Binance have to do with any of this, when the bear market actually began back on October 6–7 of last year?

[Swordsoffreedom]

Despite the hacker attack against Binance, I think the reaction of the market wasn't so negative like it could have been in past times... 6$ billion dollars is a very significant amount of money which had potential to crash crypto market to the bottom, but so far, we have seen only a minor dump.

I think the real question isn't why the market is downtrending, but why the market is so strong these days that even a theft of 6$ billion dollars isn't enough to crash it below 76,000$ line.

Pretty simple really, the market has matured. Liquidity is deeper, the market itself is much bigger, and more institutional players are involved. All of that means the market can absorb major shocks much better than it used to.

Tbh this looks normal to me . Volatility has been coming down, and BTC's gains from one cycle to the next have been getting smaller too . So it's no surprise Bitcoin isn't seeing as many extreme swings these days, even when major negative news hits.

[savetheFORUM]

Despite the hacker attack against Binance, I think the reaction of the market wasn't so negative like it could have been in past times... 6$ billion dollars is a very significant amount of money which had potential to crash crypto market to the bottom, but so far, we have seen only a minor dump.

I think the real question isn't why the market is downtrending, but why the market is so strong these days that even a theft of 6$ billion dollars isn't enough to crash it below 76,000$ line.

This like single digit percentage of dump happened because of Binance Hack, the largest is the history is too small. It just shows how strong our market is right now.

Glad that we didn't even revisited the $60,000 = because if yes, I can buy more Bitcoin. Right now, for sure alot of traders still having hard time to trade because of these recent chops that caused by Binance hack, some might took this as advantage or build of their best entry.

These kind of situations are really difficult for new traders who often find the current market situations much riskier. But it is us, seasoned traders who will find opportunities to make profits even in these situations. The moment I learned about Binance hack, I was sure that the markets will drop at least by a few points so I opened a trade accordingly. I was amused to see the profits coming along because this news did make the market fall by a few thousand dollars and with just a 2x leverage, I was able to make more than 7% profit in one single trade.

$60,000 will be the extreme bottom as of now and not just you but even institutions will start buying at the price which is only going to push the price up higher. As of now, I do not see any signs about market dropping even below $70,000 so to me, price looks strong even after an incident like this.

[Powerjumboo]

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.

The cryptocurrency exchange Binance getting hacked is not a common issue, it is definitely an important issue for crypto currency because Binance Exchange was a place of trust for everyone. Moreover, the market was already moving up and down little by little before the hack, but the dumping that Bitcoin saw from $81,200+ on the news of the hack was because of the Binance Exchange being hacked, but even though they replaced 90% of the funds, the market is not rising much, but it is hoped that the market will gradually move upwards and everything will return to normal.

[batang_bitcoin]

They can say real things that's happening behind doors and make numbers genuine and truthful to their users. But, we cannot remove the doubt that they're covering something or there's still a huge percentage that has been affected by the hack. Right now, what's important is if you don't like them anymore and you've lost confidence with Binance. It's best to withdraw your funds because it's abled again and never deposit on them anymore or until you're convinced that they can protect your funds. The downtrend that we've seen is also going to bounce back once Binance's able to calm down the market.

[Donneski]

Well, since Binance is the only major piece of information we have for now, let us see what happens once we fully resolve the issue. Then that is when we conclude how much of an impact it has on the current market situation. But I really don't think this will be enough to create panic selling.

Perhaps this is normal market behavior, and as you can see, when BTC's price drops, everything follows.

In as much as I know that incidents like the recent Binance hack can become a trigger for a bigger sell-off when market confidence is already weak, I'm of the opinion that the recent  the market reaction is was majorly caused by about Binance hack news. It's possible that many traders were waiting for a reason to exit and probably saw the news as an opportunity to do so but we can't shy away from the fact that a more than $6 billion hack is huge enough to cause a short downtrend movement of the market.

[Sanitough]

Well, since Binance is the only major piece of information we have for now, let us see what happens once we fully resolve the issue. Then that is when we conclude how much of an impact it has on the current market situation. But I really don't think this will be enough to create panic selling.

Perhaps this is normal market behavior, and as you can see, when BTC's price drops, everything follows.

What we can see is the normal behavior of bitcoin, sometimes it pumps, sometimes it dumps. However, Binance hack can also be seen as the significant reason why bitcoin is currently down today but this is just temporary. In fact, bitcoin may not be seen as affected that much because the current price drop is not that low, but you are right, let's see how much this impact will be when this matter or issue will be completely resolved. But most importantly, bitcoin will always recover after every price dump.

[bitmover]

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

Binance did not recover 90% of the stolen funds. They covered 90–95% of customer assets using its own funds. There is an enormous different in such statements.

They recovered only about 50%, which were frozen by stablecoins;

[New Judgement]

There's not other reason I can think of aside from the recent binance hack since it is the most impactful news we have before we experience the downward charts of bitcoin and other cryptocurrency. To be honest, I expect more panic and more dump after hearing the news but it fortunate that we currently see this kind of prices. Binance is considered as number one exchange and on top of it, it is the biggest crypto hack in history which can bring an extreme panic to us but after seeing the prices, it's not that bad as I'm expecting. Maybe because Binance reassures to their investor and users that it can absorb the losses because they have their company funds and SAFU that is intendly for a situation like this.

Hacking incidents were apparent this year so I think people are just used to in to this kind of thing, and with binance reassuring the public that they will cover the losses, it doesn't have much effect that we can consider this event a big crash.

The biggest exchange with the biggest stolen amount didn't give us the deepest crash we have in years.

This shows the level of work that Binance has put in their exchange. They prepared for time like this. Because how they were able to bounce back immediately without much noticeable impact in their operations, only show how big and liquid the exchange is. I kind of think people are wiser now to know that hack in an exchange should not make you sell your bitcoin due to panic. For something you don’t know who is in the other end that is pressing the button. You rush and sell your bitcoin, few days later bitcoin is already up like nothing happened, and you start regretting. People have learnt from several cases like that in the past. I believe more people are turning diamond hands.