Why many people expect Bitcoin price to dump?

[DPHOR]

We know of the hack and seriously, it's only exchange that was hacked, I wonder why many people were expecting the price of Bitcoin to dump to around 10-20 percent because of the incident of Binance hack. If you may understand correctly, Bitcoin wasn't hacked, it's only exchange that was hacked and among that around $3b was freezed and only $3 that was lost.
If you may understand correctly, Binance has also promised their users (affected victims) to buy back their assets that was stolen from their exchange irrespective of any asset that they are holding. They have also took a Snapchat for the affected victims which they promised to drop back every single token or asset that was stolen from their users, and what you should know is that Binance is also bigger than $6b dollars and they would buy back every single asset that was stolen from their users and that is also positive movement to the market which would also hold the market stronger not to dump as people were expected.
2 to 5 dump is nothing on the market and there is a better chance for the market to boost anytime soon when Binance began their buy back it would bounce back quickly .

[Merit.s]

Some funds have been recovered. Tether and Circle also helped Binance by freezing the USDT and USDC that was stolen. Thus means that the hack wouldn't affect Binance much compared to when they didn't recover anything from the $6b that was stolen. However, Binance have opened withdrawals and anyone can withdraw their asset from Binance.

Gone are the days that an Exchange hack will make the naive start selling their coins at loss which will fall the price of bitcoin. I think, it was a similar time that FTX got hacked four years ago, which made bitcoin price dip to $16k+ but today bitcoin price only dipped to $77k from $80k. The more institutions a d companies are adopting bitcoin the stronger it becomes and cannot be affected that much by the hack of an exchange alone.

[DPHOR]

Some funds have been recovered. Tether and Circle also helped Binance by freezing the USDT and USDC that was stolen. Thus means that the hack wouldn't affect Binance much compared to when they didn't recover anything from the $6b that was stolen. However, Binance have opened withdrawals and anyone can withdraw their asset from Binance.

Gone are the days that an Exchange hack will make the naive start selling their coins at loss which will fall the price of bitcoin. I think, it was a similar time that FTX got hacked four years ago, which made bitcoin price dip to $16k+ but today bitcoin price only dipped to $77k from $80k. The more institutions a d companies are adopting bitcoin the stronger it becomes and cannot be affected that much by the hack of an exchange alone.

That is right, sorry I didn't include that again.
I was meant to mention it earlier for those that has been
Waiting for Binance to enable withdrawal.
Though, I believe that would get the update on their respective mail
And same thing to me, I had the update on my mail but from what I understand,
Only USDT can be withdrawn for now maybe, other token and coin could be allowed
Tomorrow or later tonight.

[Floxynice]

Binance is the biggest crypto exchange. Do not underestimate the psychological effect this will have on many people. You are ignoring the fact that having the biggest crypto exchange in the industry hacked can cause so much panic and make some people lose confidence in crypto. Have you considered this saying: "If Binance could be hacked, who am I?"

People are selling in panic because they are not sure who is next. I will not be surprised to hear or read that an investor has decided to dump their bitcoin investment forever because of the various reports of hacks. Their reason will be that the security of their bitcoin investment is at stake.

[sunsilk]

2 to 5 dump is nothing on the market and there is a better chance for the market to boost anytime soon when Binance began their buy back it would bounce back quickly .

I wouldn't be confident about saying this, we'll never know about these dumps and hacks and if there's more, we'll see the market is reactive on it.

As for binance, they're responsible enough to cover the losses. Good thing they have the reserve and that's why proof of reserve as it's discussed in the past from their old hacking incident is doing its thing right now.

And there will be other catalysts whenever the market is dumping, we're still in the bear market and we'll probably see more before the end of year.

[Stalker22]

We know of the hack and seriously, it's only exchange that was hacked, I wonder why many people were expecting the price of Bitcoin to dump to around 10-20 percent because of the incident of Binance hack. ~

It seems you dont understand some basics.

Exchanges are where the actual liquidity lives (for 90% of retail traders).  For every major hit this place takes, no matter how it is covered (out-of-pocket, safu, whatever), market confidence drops off a cliff.  People panic and start selling because counterparty risk suddenly becomes very real. Not because someone thought bitcoin got hacked.  And now binance has to liquidate other assets/dip into reserves to cover the billions and such.  Which creates its own mess behind the scenes.

But none of this matters.  In the short run, human psychology will trump any "math" we try and apply.  It always does.

[Bd officer]

I think many people panicked after the exchange hack and expected a negative impact on the market, which is not unusual. The market has been affected to some extent because the price of Bitcoin has dropped slightly. Before this incident, the market was above $80-81k but after this incident, the market fell to $76k and is currently trading at $77k.

It is true that Bitcoin has not been hacked, so investors should not panic so much and not expect a decline like in the past.
Apart from this incident, some people expected the market to go down a bit by the end of this year. No one can say for sure whether the market will go down or not. The price of Bitcoin will not go down or rise as anyone expects.

[adultcrypto]

The hack of Binance follows series of hacks of other cryptocurrency related places like casinos, wallets and even prediction markets so it is normal for people to express anxiety which is the reason for the reaction of people. Binance is the largest exchange in the world, so anything that affects it is surely going to send some shock waves across the globe and that was exactly what happened. I was even surprised that the market did not react much to the news, I expected huge sell offs that will make it diffocult for price to recover this year.

[Alphakilo]

2 to 5 dump is nothing on the market and there is a better chance for the market to boost anytime soon when Binance began their buy back it would bounce back quickly .

I wouldn't be confident about saying this, we'll never know about these dumps and hacks and if there's more, we'll see the market is reactive on it.

As for binance, they're responsible enough to cover the losses. Good thing they have the reserve and that's why proof of reserve as it's discussed in the past from their old hacking incident is doing its thing right now.

And there will be other catalysts whenever the market is dumping, we're still in the bear market and we'll probably see more before the end of year.

I don't pray we experience more hacks before the end of the year because that would not be good for Bitcoin investors. However, the hack didn't really affect Bitcoin but stablecoins and other crypto currencies on the exchange and even if Bitcoin were stolen, such an incident was just too small to affect Bitcoin as a major volatile situation.
So we should still expect a bull season at anytime if possible and try as much to avoid the use of exchange for keeping our crypto currencies for whatever reasons.

[Rruchi man]

We know of the hack and seriously, it's only exchange that was hacked, I wonder why many people were expecting the price of Bitcoin to dump to around 10-20 percent because of the incident of Binance hack.

The expectation that the price will drop after the hack is based on what they noticed before in the market, after the news of a hack. People always expect situations to repeat themselves and history to replay itself, so they always panic when similar situations that caused the price of Bitcoin to drop happen again. I think that as the market progresses, we will see fewer reactions in the price of bitcoin when there is news of a hack than before because people will be used to not panicking at such news. The same history that people turn to currently that brings panic will be the same history that people will turn to then that will also bring solace and confidence for them to know that even though the market may react temporarily or slightly to negative news like a hack in Bitcoin, recovery is always sure.

[Japinat]

Binance is the biggest crypto exchange. Do not underestimate the psychological effect this will have on many people. You are ignoring the fact that having the biggest crypto exchange in the industry hacked can cause so much panic and make some people lose confidence in crypto. Have you considered this saying: "If Binance could be hacked, who am I?"

People are selling in panic because they are not sure who is next. I will not be surprised to hear or read that an investor has decided to dump their bitcoin investment forever because of the various reports of hacks. Their reason will be that the security of their bitcoin investment is at stake.

You are right there. And regardless if the exchange is famous or not, as long as it has something to do with crypto, bitcoin will get easily affected and dump its price, but will recover fast also once the issue get solved. And I think with Binance hack, the exchange has already taken positive action and now the exchange is already back in operation and resume withdrawals after a short time suspension.

Again, this is not new to bitcoin anymore. Bitcoin price dumps and will recover its price eventually, and might even land into another peak price of bitcoin as this is mostly the pattern.

[moneystery]

There's only one reason why they think that way: either they want to spread FUD or they don't understand Bitcoin at all. Binance and Bitcoin have nothing to do with each other. Even if there are people selling because Binance got hacked, it's because they're too worried or they have no knowledge at all.
And now it's different. The market is already filled with more players and more of them are investors who actually understood Bitcoin. They won't be more easily affected by this news, since it's just an exchange that got hacked, not Bitcoin itself. Even though Binance is one of the largest exchanges globally, Bitcoin crashing just because it was hacked is a bit ridiculous considering the size of the market.

[sunsilk]

I wouldn't be confident about saying this, we'll never know about these dumps and hacks and if there's more, we'll see the market is reactive on it.

As for binance, they're responsible enough to cover the losses. Good thing they have the reserve and that's why proof of reserve as it's discussed in the past from their old hacking incident is doing its thing right now.

And there will be other catalysts whenever the market is dumping, we're still in the bear market and we'll probably see more before the end of year.

I don't pray we experience more hacks before the end of the year because that would not be good for Bitcoin investors. However, the hack didn't really affect Bitcoin but stablecoins and other crypto currencies on the exchange and even if Bitcoin were stolen, such an incident was just too small to affect Bitcoin as a major volatile situation.
So we should still expect a bull season at anytime if possible and try as much to avoid the use of exchange for keeping our crypto currencies for whatever reasons.

We don't like to see that happen more in the next months or years to come, the emotional impact to holders even we don't have funds to those hacked platforms is causing us a lot of stress.

As for the bull season any time, we're going there and the signs will be shown once it's around. But this time, I'm not yet convinced again that we're already out of the bear.

Just keep safe your assets until the bull has come if you have plans of selling some at that time.

[Asuspawer09]

I mean that was expected when a hacking happened, it just create a lot of fear in the market so investors are mostly going to sell especially those from the Binance platform that was holding a huge lot of investment it's a normal thing if you see vulnerability on your investment, you want to get it out quickly, so probably most of the investors are taking the money and forced to sell and put it into fiat money just to make it safe.

Binance was just the biggest crypto exchange platform just like other members said, so it's a huge percentage of investors are getting affected, so it's normal to see a price dump in the market, similar to other hacks. We can surely see it's bad news for crypto, unlike if we see great news on adoptation we can clealy see the market momentum increasing.

[Hyphen(-)]

We know of the hack and seriously, it's only exchange that was hacked, I wonder why many people were expecting the price of Bitcoin to dump to around 10-20 percent because of the incident of Binance hack.

The reason why some people will be expecting the price of Bitcoin to dump is because of their panic expectations from new investors who will not want to risk their money and probably people who are new to crypto.

I see no tangible reason why the price should dump of this hack; we have experience some sort of hacks this year which include COLDCARD and ledger, I think the market is used to it already, so we all believe that Binance will bounce back and there will be no panic among investors because even if they panic and they are probably holding their Bitcoin in the Binance exchange, they can’t be able to withdraw until today; therefore, there is no need to panic. Its centralized exchange and Bitcoin is completely decentralized.

[Sandra_hakeem]

We know of the hack and seriously, it's only exchange that was hacked, I wonder why many people were expecting the price of Bitcoin to dump to around 10-20 percent because of the incident of Binance hack. ~

It seems you dont understand some basics.

Obviously. Not trying to be dismissive but what does he mean by "Bitcoin got hacked"?

Exchanges are where the actual liquidity lives (for 90% of retail traders).  For every major hit this place takes, no matter how it is covered (out-of-pocket, safu, whatever), market confidence drops off a cliff.  People panic and start selling because counterparty risk suddenly becomes very real. Not because someone thought bitcoin got hacked.  And now binance has to liquidate other assets/dip into reserves to cover the billions and such.  Which creates its own mess behind the scenes.

I have always felt that volatility comes at a huge cost that a weak mind can't forbear. It's always the same reaction all the time--- the FUD spreads even further, investors panic as it sends shock waves across. Not to mention that an exchange like Binance would suspend all deposits and withdrawals immediately, making it even more disturbing for those who had so much liquid asset.

@Stalker, the out-of-pocket and SAFU settlements that you made mention of are simply discretionary promises rather than a standard trust deficit like what we have in financial sectors that control Fiat. But I know they don't want to fall out of business so they have to cover the huge loss.

But none of this matters.  In the short run, human psychology will trump any "math" we try and apply.  It always does.

Humans have evolved to move on quickly from anything. It's not the first, it won't be the last, sadly.

[Botnake]

Whatever is relevant to bitcoin, it creates impact to the price of bitcoin. This is probably the reason why a lot are expecting for bitcoin price to dump because Binance exchange is not just an exchange, but it also plays a big role in the long journey of bitcoin.

Fortunately, Binance exchange has slowly regained what has being lost, and it brings positive effect to bitcoin too. And while the exchange is now recovering, bitcoin itself will also pump its price later on and be back to its regular price soon. I guess this is no longer new to us and bitcoin.

[Perfectbaby]

The hack of Binance follows series of hacks of other cryptocurrency related places like casinos, wallets and even prediction markets so it is normal for people to express anxiety which is the reason for the reaction of people. Binance is the largest exchange in the world, so anything that affects it is surely going to send some shock waves across the globe and that was exactly what happened. I was even surprised that the market did not react much to the news, I expected huge sell offs that will make it diffocult for price to recover this year.

From what I sense and understood, the hacker didn't have much access to dump those stolen coins on other exchange that is why they didn't reacts so easily. Then lastly the hack is not on Bitcoin blockchain but on exchange so we shouldn't expect much dump and only amateur investors or newbies that usually panic and sell their coins and Bitcoin whenever they noticed such hacking news.

[kawetsriyanto]

People just guess it because people view it from the historical aspect. In the past, the market was often dumped whenever there was severe hacks. Moreover, it is the hack case from number 1 CEX in the world. So, I think it is normal that people assume market will be dumped and Bitcoin price will decline quite significant. It is reasonable, market may be dumped if scammers sold those big number of the coins. However, it isn't only in Bitcoin, it will affect to almost the whole coins.

[BitMaxz]

Well, there's another reason why they are dumping these days. The buyback operation will end soon; they're just timing that, which looks like it was a plan.

If you go with a technical analysis this month, have a slight pump and then going to down rend with a pullback.
I feel like the news or the hacks from Binance is just an inside job; they use it to panic investors to sell.

Note we are in the battle between big players in the market no matter what they want, both fundamentally and technically manipulated.

This heavy impact news lately maybe they are planning something. Look at the chart in a daily time frame with EMA 200; it rejected and I think we will experience again a slight increase this week or possibly a consolidation phase before the big pump coming after retesting the bottom.