Why many people expect Bitcoin price to dump?

[PX-Z]

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.

Regardless the amount lost from binance, remember there are few exchanges were hacked too including bithumb, polymarket and then there is bitmart just few days ago. Its worst time for these businesses, and other users from market sudden change due to these news.

[Tongley]

Binance is not a $6 billion company, Binance is a $100 billion company. Binance will be able to fully compensate everyone, they may not have any financial problems, but the problem is that it is not just a financial loss but also a risk to everyone about the security of Binance and many people will now be afraid to use Binance and they will not use Binance at all.

Yes, Bitcoin was not hacked, but as soon as Binance was hacked and the news spread, everyone who had Bitcoin in Binance sold their Bitcoin, which is why we saw a decline in the Bitcoin market. However, there are some traders who sold their holdings in fear after seeing the market fall.

[Saltysugar99]

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.

That is why you should not keep a large amount of funds on the exchange. The security of the bitcoin wallet is very strong. But even if the security system of the exchange is strong, if there are weaknesses in some cases, hackers spend a lot of time and are able to hack it, then incidents like Binance may happen again with other exchange . Several exchanges have been hacked before. But the amount of funds was not so high as binance . So if someone keeps their valuable bitcoin on the exchange, then ultimately they are doing something stupid. 50 btc is a very large amount of wealth at this time. If someone keeps so much bitcoin on the exchange, then even if that exchange is not hacked, it is risky. Therefore, bitcoin should always be held in a self-custody wallet. This makes the security system much stronger.

[Franctoshi]

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.

It isn't totally right to say that the FTX event was a hack. Mainly, the $8 billion FTX saga was not actually an event of a hack; it was a collapse and bankruptcy because Sam Bankman-Fried was busy lending customer money to his other company, Alameda Research, and they were gambling it away. When they were caught, all the customers started requesting to withdraw their money, and there was no money to pay them all off, so they later filed for bankruptcy. The later $400 million hack was after the collapse and even part of a cover-up to actually delay and to deny customers from withdrawing their funds.

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.

[Uhwuchukwu53]

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.

That's correct, definitely the happening I give man a a shock to panic where they will be forced to trigger their withdrawal that might leads to such dropped but looking at the trajectory it's not as many expected it I won't say me personally wasn't in that direction because it's normal I hard the feeling that it will dip , reason been that those that save in exchange might consider holding in cold wallet or self custodian or might be forced to sell off basically those who mindset is not strong enough about the current wave where the hack has hit the biggest exchange in the world of cryptocurrency and what next could be their faith such thought would drop the price, but I will said it's impressive that all of this assumption is vice versa not as people imagine.

[Woodie]

Looks like Trump losing the midterms absorbed all the negative impact from the Binance hack..

With trump losing alot of things might happen, the AI industry which is getting alot of investment funds could slow down and Investors could be pushing liquidity back into Bitcoin & other cryptos.. and with the democrats having got most of the seats also means the war could now slowdown and maybe nolonger happen, otherwise the US midterms and Trump losing is a sign that normalcy is about to return.

[CryptoBuds]

Looks like Trump losing the midterms absorbed all the negative impact from the Binance hack..

With trump losing alot of things might happen, the AI industry which is getting alot of investment funds could slow down and Investors could be pushing liquidity back into Bitcoin & other cryptos.. and with the democrats having got most of the seats also means the war could now slowdown and maybe nolonger happen, otherwise the US midterms and Trump losing is a sign that normalcy is about to return.

The market's reacting positively to the Dems winning because it figures Trump can't keep throwing his weight around and the world will get a bit less chaotic . It's way too early to call it a win for crypto like you're thinking, tho.

Don't forget, the Democrats aren't exactly crypto friendly . If they don't change their stance and try to roll back this admin's crypto policies . That's a headwind for the industry ,  and investors and institutions could get more cautious about deploying capital.

Can't draw any conclusions at this point , imo.

[OcTradism]

It isn't totally right to say that the FTX event was a hack. Mainly, the $8 billion FTX saga was not actually an event of a hack; it was a collapse and bankruptcy because Sam Bankman-Fried was busy lending customer money to his other company, Alameda Research, and they were gambling it away. When they were caught, all the customers started requesting to withdraw their money, and there was no money to pay them all off, so they later filed for bankruptcy. The later $400 million hack was after the collapse and even part of a cover-up to actually delay and to deny customers from withdrawing their funds.

Terra is a hack but FTX is not a hack, these two collapses are severe ones two market cycles ago during a same bearish year but they're different with each other.

FTX had bad management of user capital and they used user capital deposited to FTX exchange for the exchange founder and some core members in wrongly moral and financial ways. Then a combat between Changpeng Zao and Sam Bankman-Fried caused some posts from CZ, did revealed bad risk and financial management in FTX. It triggered a bank run from FTX exchange and it collapsed quickly because of that.

https://www.investopedia.com/what-went-wrong-with-ftx-6828447

[HajiBagi]

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 .

I understand that you are trying to make people to say that because of those who are going to panic after hearing that, but what I am going to ask you is that did you really know the reason why some people are saying that? Some people are saying that because of their feelings and analysis in the market and they see bitcoin is moving, no one can predict bitcoin and know one knows when the price is going to drop, everyone knows that Binance was hacked and it something that is shock, everyone knows that Binance is a very big exchange and if people said that because of that i will not argue with them but no one can predict bitcoin price.

[YOSHIE]

Why many people expect Bitcoin price to dump?

In my opinion, when many people analyze the predicted fall in Bitcoin prices, for me it is a normal and normal thing like Bitcoin assets, Of course this situation has reasons and corrective factors for people predicting Bitcoin's fall, such as understanding market cycles, selling actions, macroeconomics and so on.

We know that the Bitcoin market definitely experiences a cold cycle phase and a correction cycle phase. This often happens in the crypto market. In the world of the crypto market, there are such things as technical signals where there are changes which are called bear and bull markets, as well as graphic patterns and various other reasons Bitcoin could plummet.

[PVequalNRT]

Binance is not a $6 billion company, Binance is a $100 billion company. Binance will be able to fully compensate everyone, they may not have any financial problems, but the problem is that it is not just a financial loss but also a risk to everyone about the security of Binance and many people will now be afraid to use Binance and they will not use Binance at all.

Yes, Bitcoin was not hacked, but as soon as Binance was hacked and the news spread, everyone who had Bitcoin in Binance sold their Bitcoin, which is why we saw a decline in the Bitcoin market. However, there are some traders who sold their holdings in fear after seeing the market fall.

Some people don't know there are business men sitting in one corner waiting to rescue Binance. What happen in the exchange as a hack, this is not like FTX that used users funds for gambling and other investment. I'm sure that immediately Binance announced they lost $6B, people will be offering to bring Binance to their feet again by lending them and want to take the advantage to seal a deal with them. Even if they don't have the money, Binance can never go down.

The midterm election were done yesterday and the election result concluded that democrats won more and somehow the market bounce back. Bitcoin touch $80k plus, that is to tell everyone that the market will not dump.

[SilverCryptoBullet]

Some people don't know there are business men sitting in one corner waiting to rescue Binance. What happen in the exchange as a hack, this is not like FTX that used users funds for gambling and other investment. I'm sure that immediately Binance announced they lost $6B, people will be offering to bring Binance to their feet again by lending them and want to take the advantage to seal a deal with them. Even if they don't have the money, Binance can never go down.

You are too naive to think that there are always people, companies, entities that are silently observing the situation but ready to rescue Binance or any business company in trouble. They might do that, put out their hands to help, or just let a competitor to die, collapse, bankrupt, and you never know what they will do and what will happen with that in-trouble business.

Binance is big but it's unlikely "too big too fail or fall", such times might come anytime in the future, and if it happens with Enron, FTX, it will possibly happen with Binance.

Just withdraw your fund out of Binance, and you will completely safe with funds in your non custodial wallets. Then you can watch the situation goes in next weeks or months without any fear and uncertainty.

[Majestic-milf]

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 .

Many people thought or hoped Bitcoin will drop so they can gloat again. Unfortunately, it was just an exchange that got affected and now they are functioning. At this rate I don't give two fucks about haters or people who pray to see the fall of Bitcoin, if you have a means to increase your portfolio, do it. The best way to answer these kinds of people is when you're making lots of profit from your Bitcoin investment and then they will secretly wish they hadn't let their myopic mindsets stop them from profiting.

[uchegod-21]

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 .

I understand that you are trying to make people to say that because of those who are going to panic after hearing that, but what I am going to ask you is that did you really know the reason why some people are saying that? Some people are saying that because of their feelings and analysis in the market and they see bitcoin is moving, no one can predict bitcoin and know one knows when the price is going to drop, everyone knows that Binance was hacked and it something that is shock, everyone knows that Binance is a very big exchange and if people said that because of that i will not argue with them but no one can predict bitcoin price.

OP is wondering why people are expecting bitcoin to dump because of the hack. He already has his answers before him. Those expecting bitcoin to dump are among the same people who panic over such news. As soon as news like this breaks out, speculations and assumptions start flying around, and people begin making decisions out of panic. We saw how bicoin's price declined during that short period. Yes, that is human behaviour for you. Binance is a big name, so I expect some people to react in such a manner, even when they are aware that it wasn't Bitcoin itself that was hacked, but an exchange holding people's coins.

[Pandorak]

(...)

You are too naive to think that there are always people, companies, entities that are silently observing the situation but ready to rescue Binance or any business company in trouble. They might do that, put out their hands to help, or just let a competitor to die, collapse, bankrupt, and you never know what they will do and what will happen with that in-trouble business.

Binance is big but it's unlikely "too big too fail or fall", such times might come anytime in the future, and if it happens with Enron, FTX, it will possibly happen with Binance.

Just withdraw your fund out of Binance, and you will completely safe with funds in your non custodial wallets. Then you can watch the situation goes in next weeks or months without any fear and uncertainty.

What you’re saying makes sense. We know Binance is one of the largest exchanges in the world today, with massive trading volume and a huge user base. But that doesn’t automatically guarantee security, the potential for a hack will always exist. No matter which exchange you use to store your money or investment assets, there will always be risk. Perhaps for now, Binance is still able to weather the recent hack they experienced, and everything is starting to return to normal, for example, withdrawals that were previously suspended have now been reopened. But i would say that we don’t know what will happen in the future or in the coming years, there could very well be another hack that results in even greater losses than this one.

So if peace of mind is your priority, self custody could be an option for you. That way, you won’t have to worry if the exchange ever faces issues like another hack. However, choosing to store your assets in a non-custodial wallet doesn’t completely eliminate risk, there’s always the potential to lose your Bitcoin, such as if you lose your seed phrase or fall victim to a phishing attack, etc. So both options carry risks, but if your goal is long-term storage, it’s definitely better to keep your assets in a non-custodial wallet.

[Hamza2424]

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.

They allowed withdrawals in phases, and in the first phase, they allowed 15 currencies. You can check here https://x.com/heyibinance/status/2116754265121366112

Anyway, now we can withdraw our funds easily, whether it's BTC or ETH, as they were in their first phase. But bro, where did you get the information that they will buy back the funds that have been lost? I did not hear any news like this.

Anyway, even if there is no news, they have to buy, but bro, they will prefer OTC deals, and you know in these deals the impact on the prices of the tokens is not quick. We can see the impact in the long run only.

[hafiztalha]

The market's reacting positively to the Dems winning because it figures Trump can't keep throwing his weight around and the world will get a bit less chaotic . It's way too early to call it a win for crypto like you're thinking, tho.

Don't forget, the Democrats aren't exactly crypto friendly . If they don't change their stance and try to roll back this admin's crypto policies . That's a headwind for the industry ,  and investors and institutions could get more cautious about deploying capital.

Can't draw any conclusions at this point , imo.

I am not agreeing about this point. Due to the USA election, the bitcoin market has not had any change because everyone knows Donald Trump failed to deliver because he was not in his mind after winning the presidential election and made a few wrong decisions done for him. Now it's Dems taking charge; they are crypto-friendly, or no, it's not important.

Bitcoin will stay on its own and have a good future; it's always been a big positive thing. With him, the future is good and secure, while few changes can make a delay in a possible increase because now hacks and scams are also increasingly happening; these are going to have a big impact on crypto, especially AI, doing good damage because it's had enough to steal things that are always important for security.

[Versatile_choice]

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.

Holding your bitcoin in an exchange wallet does not show that an Investor is coordinated and I doubt it when you said they will not panic over exchange hacks, it is only a foolish investor that will hold his or her bitcoin in an exchange wallet knowing fully well that the security is not tight enough.

A wise investor wouldn't try such, although many people does not know the different between non custodial wallet and custodial wallet. Some feel all wallet are just the same that is why many people are being scammed through this wallet hacks.

[SOKO-DEKE]

The reason why some sets of people are expecting the price of Bitcoin to dump is that they believe some people will be in panic when the the news come out and end up selling their Bitcoin as most term whenever their is bad new their is always dump in the price of Bitcoin and other coins. The rate at which investors will be  rushing to sell their Bitcoin will determine how much the price of Bitcoin will continue to dropping. If some investors were panicked  and sold their Bitcoin because Bitcoin just decreases to take correction, why are they not to do the same thing this time?What is happening now is that many big investors are not that panicking, as Binance has promised that their funds are safe. If not for that assurance, the market might have dumped because once some big investors start selling their Bitcoin, the market will start dumping seriously, and that will make more small investors rush to sell their holdings also.