Why many people expect Bitcoin price to dump?

[Bigjoe33]

Even after the Binance hacking incident, I have not seen any major negative changes in the Bitcoin market, the changes that have occurred are normal, i.e. such changes occur regularly. So those who are afraid that the Bitcoin market will change significantly due to the exchange hacking incident should perhaps come out of this kind of thinking.

While it may change or get affected as we saw few days back, and the price dumped just a little, and perhaps, some people would have panicked and sold some more or little, I think the change is not significantly big, and to me, it's means normalcy will return soon. If people fret, it's not out of place, because if Binance as one of the big exchanges can be hacked, then maybe, oil can't trust the crypto world. But if you ask me, it's just a hack, and am sure everything will get back to normal.

If we fear the dumping so much, we should remember it's a normal thing for Bitcoin to fluctuate. So, we shouldn't fear too much, but hope that Bitcoin will climb soonest. I feel even though the hack om Binance might affect some people's though about Bitcoin or crypto generally, Bitcoin is Bitcoin, and it will get back to better figures.

[Patikno]

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.

Several of our friends here have answered your question, and some of them have addressed the "impact", or consequences.

In the short term, there has been market panic affecting the Bitcoin price, causing it to drop, and that is why people are predicting a Bitcoin crash. Well, I am sure this panic won't last long, because the real problem is with the exchanges, not Bitcoin like you said. So, I don't think this will affect the Bitcoin price in the long term, and I am sure this kind of thing will pass like it has in the past. Essentially, it won't affect it too much; Bitcoin can always weather the storm.

[liasbaa]

Op the market has started to recover as per your prediction. Basically, some investors believed the hype and expressed disappointment without analyzing the depth of the market. The theft of crypto from Binance, a reliable exchange for cryptocurrency investors created some fear among small investors. The theft from such a large exchange was unbelievable to many. The weakness of the security system was probably not expected by any investor from this huge organization.

As a result of this fear the demand for crypto may have decreased slightly and the price decreased slightly. You can call this a regular correction phase. There should be no fear and panic because Binance has promised its customers to cover all losses. The market is recovering and the bull run will start soon.

[Ayers]

Several of our friends here have answered your question, and some of them have addressed the "impact", or consequences.

In the short term, there has been market panic affecting the Bitcoin price, causing it to drop, and that is why people are predicting a Bitcoin crash. Well, I am sure this panic won't last long, because the real problem is with the exchanges, not Bitcoin like you said. So, I don't think this will affect the Bitcoin price in the long term, and I am sure this kind of thing will pass like it has in the past. Essentially, it won't affect it too much; Bitcoin can always weather the storm.

You're just stating the obvious, and I'm pretty sure everyone knows that except the newbies who don't know much about the market yet. 
In almost 2 decade, countless centralized platform have collapsed and Bitcoin not only held up but thrived. What makes Binance the exception? That's not what OP was talking about anyway.

the reason so many expected Bitcoin to dump 10-20% is pretty simple imo, it's still a heavily speculative asset. Herd mentality and fear can make investor overreact to bad news, even when the incident has nothing directly to do with Bitcoin.

[Webutxo]

Op the market has started to recover as per your prediction. Basically, some investors believed the hype and expressed disappointment without analyzing the depth of the market. The theft of crypto from Binance, a reliable exchange for cryptocurrency investors created some fear among small investors. The theft from such a large exchange was unbelievable to many. The weakness of the security system was probably not expected by any investor from this huge organization.

As a result of this fear the demand for crypto may have decreased slightly and the price decreased slightly. You can call this a regular correction phase. There should be no fear and panic because Binance has promised its customers to cover all losses. The market is recovering and the bull run will start soon.

Bitcoin can only dump if the hackers that stole money from exchanges decided to dump the coins but there is no at to do it. So far, they can't move the coins to centralized exchanges and they don't want to use the decentralized exchanges because they fear they are going to lose their money. That is why they are swapping the coins between the chains. Altcoins are the coins that are getting hit in this dump, they don't do Bitcoin that's why the price is not dumping.

Binance has even replenish the stolen coins. There hot wallet are filled up and back to where they belong for customers. Some people are waiting for the price to dump now but they aren't ready to buy. Why want Bitcoin to dump and you are not ready to buy any coin.

[Yamifoud]

This led to the fact that crypto investors are watching the news. The more they see negative things happening, the more it has a negative impact on their mindset. No wonder why this happened because we're too emotional.

Anyway, way back in 2023, there was a survey conducted by the Central Bank of Eswatini showing the percentage of investors who hold, buy, and sell.

According to the Central Bank of Eswatini's 2023 cryptocurrency survey, 60% of respondents who experienced a decline in their cryptocurrency's value did nothing, while 22.4% bought more. Only 17.6% decided to sell.

source: https://www.centralbank.org.sz/wp-content/uploads/2021/04/CRYPTO-MARKET-REPORT_18-Dec-2023.pdf

Although it was in 2023, I don't think the figure changed a lot.
It means that despite the decline, many still prefer to hold and oppose the trend rather than follow it.

[Fiasem20]

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.

This year happens to be the year a lot of crypto related platforms got hacked,and this will put fear in the mind of those that were interested in starting their crypto journey.It’s just like starting an investment and only for you to find out that where you started your investment has reported a lot of hacks,honestly a person that don’t have a tough skin wouldn’t think twice but to stay away from the market.The rampant hack reports would pose a threat indirectly to the crypto world,but the as it is known “not your keys not your coins”,so the money you put in your exchange shouldn’t be kept there for too long it should be there for active trading and not a means to hold for the long term.

[Floxynice]

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.

This year happens to be the year a lot of crypto related platforms got hacked,and this will put fear in the mind of those that were interested in starting their crypto journey.It’s just like starting an investment and only for you to find out that where you started your investment has reported a lot of hacks,honestly a person that don’t have a tough skin wouldn’t think twice but to stay away from the market.The rampant hack reports would pose a threat indirectly to the crypto world,but the as it is known “not your keys not your coins”,so the money you put in your exchange shouldn’t be kept there for too long it should be there for active trading and not a means to hold for the long term.

Yea. To a person who is not too knowledgeable about Bitcoin, it will be difficult to convince him that all of those hacks are not directly on the Bitcoin network, but on third party platforms. Instead of trying ad much as possible to embrace self-custody, they will rather choose to believe that investing in bitcoin is high risk and anything can happen. This is not the first time that this kind of hack is happening even though this year's own seems to happen more frequently, bitcoin still bounced back just like it always does. But believe me, there are still people who are having double thoughts about Bitcoin just because of these recent hacks.

[icebar]

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 there is a major hack in the cryptocurrency space, there will definitely be panic among all the investors. There are many investors who will panic sell Bitcoin as soon as they hear about it, hoping to recover their losses, but after the current Binance hack, it is not happening as it was supposed to because since Binance is taking responsibility for their losses, the fear among the investors has gone away. Usually, when the trust in a major exchange in the crypto market decreases, it directly affects the market, which is why the market goes bearish, and even if there is a major hack, the same situation is created among the investors. Investors lose trust, which is why the market can be bearish. But even if Binance is hacked, the hackers cannot take the entire assets there, which is definitely a positive aspect. If the hacked money can be recovered, the market can be stronger than before. In the meantime, a positive trend is seen in the market.

[Stable090]

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.

Immediately some people hear about exchange being hacked, some of them do panic and sell their bitcoin. When there is a hack, there is always panic in the market, and people that are not strong minded will end up selling their bitcoin. Some of them will sell, and they going to be waiting for the price to dump so that they going to buy back. The recent hack which happened didn’t have so much impact, I expected bitcoin price to drop more than how it dropped, because we know that Binance is a reputable and well known exchange, I expected the hack to cause more panic, but right now the market is already recovering, bitcoin price has already bounced back.

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 don’t know if Binance has begin to buy back the assist lost, but their was a sharp pump in bitcoin price today, and the price has recovered already, I didn’t even expect the price to recover so fast. Let’s hope bitcoin price is going to keep on pumping.

[Faisal2202]

What do you mean by buyback? So you think the bitcoins we all lost will be bought back by Binance? Bro, they were thousands of bitcoins, and if Binance were to buy them back and give them to us, then why isn't BTC pumping, haha?

They never said they would buy back every single asset that was stolen. They just said they would replenish them from their reserves, SAFU, and their own assets.

So don't expect the market to move up. The FUD in the market is also mainly due to the midterms in the US, not Binance.

[HustleZ]

[…]

I dont know why people were expecting that big of a dump because this clearly wasnt a blockchain breach, this was just an exchange’s security which i dont think affected the users much as binace faid for the losses by their SAFU fund. One more thing i want to talk about is that people, especially FUD makers are using this to misguide people by showing the exchange breach as a flaw of the blockchain, just on the day of incident i saw on a very popular news channel in my country that, “block chain is losing its security, people’s funds arent safe” so this misguides people into thinking bad about BTC

[macson]

Looking at the market today, does it seem that bad? No. Because conditions are different now. Maybe in the past, when an exchange was hacked, it had a significant impact on the market, but things have changed since then. Now the market is more mature, and investors are smarter in understanding what's actually happening. So even if such incidents occur, the impact is no longer so bad.

[Big Dirams]

Looking at the market today, does it seem that bad? No. Because conditions are different now. Maybe in the past, when an exchange was hacked, it had a significant impact on the market, but things have changed since then. Now the market is more mature, and investors are smarter in understanding what's actually happening. So even if such incidents occur, the impact is no longer so bad.

I think you are correct, it was years back where hacks affect the market and probably because they is not many things that helps to give impacts on the market and probably effects because there isn’t much investors back then and many big holders but now there are many holders and many investors all over and so many reasons that can help give impacts and effects to the market.
The market didn’t witness much change from it movement that much and most people that didn’t know about this hacks didn’t even knew the market faces some dips just over the hacks because they thought it was just normal fluctuations as usual. But just like you said the market is more mature now and more unique.

[Rengga Jati]

Looking at the market today, does it seem that bad? No. Because conditions are different now. Maybe in the past, when an exchange was hacked, it had a significant impact on the market, but things have changed since then. Now the market is more mature, and investors are smarter in understanding what's actually happening. So even if such incidents occur, the impact is no longer so bad.

You are right. Crypto market looks more mature. Investors are also no longer easier to be influenced by bad news. So, there will be no more panic selling because of bad news, even it is bad news like the hack of big exchanges. Yes, the market has moving in a different direction today, it has increase gradually again. I see Bitcoin price returning to around $80k-$81k again. If this continues until the end of this week, I think the decline has stopped and the price may try to reach $85k again in the near future. What do you think?

[Hazink]

Yea. To a person who is not too knowledgeable about Bitcoin, it will be difficult to convince him that all of those hacks are not directly on the Bitcoin network, but on third party platforms. Instead of trying ad much as possible to embrace self-custody, they will rather choose to believe that investing in bitcoin is high risk and anything can happen. This is not the first time that this kind of hack is happening even though this year's own seems to happen more frequently, bitcoin still bounced back just like it always does. But believe me, there are still people who are having double thoughts about Bitcoin just because of these recent hacks.

People choose to believe what they want to believe and what makes them feel alright if not, even is someone does not knowledge of bitcoin, a little research can show where it was hacked and how it's not bitcoin but just wallet software. The same set of people who can be quick to judge or put it on bitcoin won't do same if any hack happens to any financial sector that have to do with fiat.

[Btcdeybodi]

Looking at the market today, does it seem that bad? No. Because conditions are different now. Maybe in the past, when an exchange was hacked, it had a significant impact on the market, but things have changed since then. Now the market is more mature, and investors are smarter in understanding what's actually happening. So even if such incidents occur, the impact is no longer so bad.

The reason why exchange hack affected the market in the past was because many people sold their assets because they were afraid but today, investors who hold their assets in centralized exchanges just makes withdrawals to self custody wallets instead of selling them because the market holds more value now than it was in the past. Imagine if someone who owns 50 Bitcoin sells his Bitcoin out of fear due to the exchange hack. A lot of investors do not want to sell their assets anymore because they are now wiser and knows the aftermath. I also like the way that investors are coordinated, they don't panic over exchange hacks anymore.

[snowpega]

What do you mean by buyback? So you think the bitcoins we all lost will be bought back by Binance? Bro, they were thousands of bitcoins, and if Binance were to buy them back and give them to us, then why isn't BTC pumping, haha?

They never said they would buy back every single asset that was stolen. They just said they would replenish them from their reserves, SAFU, and their own assets.

So don't expect the market to move up. The FUD in the market is also mainly due to the midterms in the US, not Binance.

Yeah, this is the most likely reason why the Bitcoin market started to pump today.
The good thing is that not only bitcoin price goes up today when the Democrats won this midterm election, stock market pumped and a lot of money added today into the market. Similarly, another good thing for all of us is that Brent crude oil also crashed around 10%, which I believe means that the price of oil and gas will start to reduce around the globe, and this obviously helps inflation rates come down. And, obviously, when this happens, people will be able to save more discretionary income(Bitcoin supporters), and they can use that money to buy more, and we can see a good price pump further, in my point of view. What do you think about it?

[Emitdama]

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 .

The reason why so many people were expecting the prices to dump after the hack was because they know this market is full of panicking retail investors who wouldn't think so much about what has happened, who is affected and who isn't, and whether people are going to get their money back or not, they just hear about the biggest centralized exchange of the industry getting hacked and the hack is the biggest of the industry, they simply panic and decide to sell, and when mass selling happens, we know what happens. So we can't really blame people speculating on a drop after such an incident, after all, it all depends on how people react to such things, and there is always a possibility of a drop happening in such times.

Those who are wise enough and understand everything properly would obviously stay calm and observe everything properly, get updates, and see what is going to happen. Binance provided quick updates about what happened and what they are going to do, reassuring its users that they won't lose a penny and it's the company that will take the hit, which is great, and I believe this was one of the reasons why the market didn't crash as much as it was expected to crash, but another reason is probably that the market is getting more matured over time, and more retail investors are now getting wiser, probably, and might have a change of mindset regarding hacks and exploits of such nature.

[AakZaki]

I don’t know if Binance has begin to buy back the assist lost, but their was a sharp pump in bitcoin price today, and the price has recovered already, I didn’t even expect the price to recover so fast. Let’s hope bitcoin price is going to keep on pumping.

Do you not understand the concept of a hacked asset so you say Binance has bought back the lost asset.
Binance never said they bought the lost assets, but rather they said that the users' assets would be safe, and yes they recovered those lost assets from their own reserves.
Regarding the price of Bitcoin that fell a few days ago, it was a momentary panic because there was bad news, and it is commonplace.
But all of that has its time, such as when the news subsides, the FUD that occurs will gradually disappear, then Bitcoin will become stable or even better than before.