From Panic Selling To Absorption: Bitcoin Maturity/Stability

[tabas]

Another thing to consider is that if it was before, no protection funds. People that lost their money on exchanges are not recovering it back, but there are some that take many years after the hackers was known and the coins were recovered. So people are not really getting panic during exchange hack like before. I am referring to major exchanges and not small exchanges.

Are you therefore suggesting that storing coins in exchanges offer some form of insurance? There have been many theft this year, those involving coins in wallets and those involving exchanges but those that involved exchanges were covered by the exchanges whereas those involving wallets were not covered by anyone. Under this logic, don't you think that storing coins in exchanges have become a bit safer for people than in private wallets where no one takes responsibility but you?

Not really, he's only comparing the past hacks and the recent ones. Before, there's no customer protection, no safu and if an exchange is hacked, there's no refund. Although it might be a point why people continue to deposit funds in exchanges due to these safu and other protection and they think that it's safer if the responsibility is brought up by the exchanges but, it's never guaranteed that they'll always be like this. Just so happen they've got extra funds and have prepared for incidents such as this and no one knows if this coverage will replenish their reserve again quickly for another unprecedent attack.

[suzanne5223]

Until we see a few more events handled cleanly, let's say the Bitcoin market is maturing and not fully mature.
The maturing I like about BTC at the moment is the shift from exchange hacks that used to lead market bloodbath before thats a temporary market dip.
I like it because I see it as one of the clearest signs of maturity.
Another thing is how liquidity is now more distributed among platforms and not concentrated on 1–5 exchanges like it was years ago.
While the self-custody culture is stronger since more people treat exchange as temporary trading capital rather than long-term holdings, and when Binance or big CEX covers customer losses, the market prices it as an operational hiccup instead of systemic failure.

[Odogwu-Blockchain]

Bitcoin’s resilience proves that security isn't achieved by hiding flaws, but by exposing code to the open market, letting it get tested by malicious actors, and continuously hardening the consensus rules.

So many hackathon programs, developers getting paid in high amount for hackathon bounty, still, there is no better security yet. I know incident like this will trigger more security measures to be practiced and implemented, but there shouldn't be when hacks happens, upgrade should be done even when things are good.

Learning from other's mistakes too is another signal for tighter security, Binance must have learnt from Bybit and bitget hacks, asks questions about the weak point and works on it because these three exchange runs on the same or similar protocols.

[Zoomic]

Have you tried seeing it from the POV that Bitcoin's maturity sign we're seeing today was also influenced by the fact that people are gradually learning to separate Bitcoin from the platforms they use to access it?

In the previous cycles especially the early days, investors weren't as clear as they are now that an exchange can have a security problem without Bitcoin itself being affected so in their bid to protect their assets, they'll pull out when issues like the recent Binance incident happens. Investors now know better and doesn't react to every news headline blindly, that's contributed to the maturity and stability of Bitcoin

[joniboini]

In the previous cycles especially the early days, investors weren't as clear as they are now that an exchange can have a security problem without Bitcoin itself being affected so in their bid to protect their assets, they'll pull out when issues like the recent Binance incident happens.

You can probably include this inside OP's first point, unless you wanted to specify exchange problem as another issue. But it's clear that OP or anyone involved knows there's no single factor to how the market changes. It's kinda naive to think there's only 1 single factor or 2 big factors to begin with. Market, or people in general, responds to various things (some of them are exclusive to their own experience too).