Potential Impact of Binance Collapse on Bitcoin ($BTC) Price

BVeyron

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

I think that online crypto trade platforms seriously affect BTC price, since many traders are involved into cryptotrading nowadays. So if some of the financial platforms face difficulties, then price can change (not only fall, but also rise). The main thing about such platforms is the large amount of wallets attached to the network. Not all the platforms guarantee anything in case of "difficulties" and can easily become a scam. None of the "approvals" nor "licenses" will help in such cases.

adaseb

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I don’t know who to believe exactly. There was speculation that when BNB went below $215 it could cause some massive liquidations and there was some conspiracy that CZ was selling bitcoin to buy BNB to support $215. A few days back it broke and nothing happened.

I just think after FTX we assume all exchanges are frauds and jump to conclusions. I don’t think there will be any major issues. Binance Us is a small exchange and won’t affect Binance at all. Too much regulation in the USA anyways to keep them open there.

rikybrosh

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I think if anything bad happen with any cryptocurrency related company then it will make the price of bitcoin drop. bitcoin price is strongly influenced by sentiments, any bad news will affect bitcoin price. in my opinion, if there is no bad thing happen that related to cryptocurrency then people will feel safe, comfortable and confidence to save their fund in form of btc.

The Cryptovator

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The potential collapse of Binance poses a significant risk to the entire cryptocurrency market. The repercussions could extend to Bitcoin and other cryptocurrencies, leading to instability. Binance plays a crucial role in maintaining market stability, and its downfall could unsettle the entire crypto landscape. The resulting loss of funds for numerous users would likely be the primary cause of market harm. Let's hope that such a scenario can be averted, and Binance can adeptly navigate any challenges it faces.

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

There was a time I had Binance my first Binance account and there was no KYC back then, you can used a dummy email and a password to get access to every features then before the introduction of P2P and Launchpad and I can tell you that you that I enjoyed it because I don't live my coins on them, I deposit other coins, swap to BTC and move them out and everyone like me where all there but when KYC became a mandatory thing, they lose users like me but till today, it's suprise me how they managed to get back users this much, perhaps their launchpad marketing and gains made people like the exchange but I don't like them a bit.

If Binance go down today, I'm sorry to say that bitcoin price will half the original price today because they have lots of coin in there reserves wallets that can do lot of damages, institutional and microstrategy all have assets under them. I pray they don't collapse but if it does, it's going to be a hell on earth for crypto and everyone, that's why we must reduce our dependency on centralized exchanges.

ololajulo

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I'm unsure why I sense that the battle against Binance aims to diminish its market control rather than eliminate it. Can they actually reduce its dominance? That remains uncertain. The American structure doesn't align with Binance's operations, but Binance has looked beyond the American market, unlike exchanges like Kraken and Coinbase, which now regret not accommodating other nationalities.

Pokapoka124

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CZ doesn’t control bitcoin price. If the exchange falls, bitcoin price will drop but after some time the market will definitely recover. Other exchanges have come and go in the past, I could go all day on the list of failed exchanges and exit scams in the last decade, and the most recent would be FTX. When FTX exchange was exposed to be a scam, there was panic amongst investors and it showed in how the market responded to the news. I think when more people decide to take their coins off centralized exchanges, the less effect they are going to have on the market.

salad daging

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Quote from: PX-Z on August 22, 2023, 06:57:48 PM

It will be a catastrophe for sure, worst than FTX incident. Not just in crypto space but also on other company where binance invested, there will be lot of company who file bankruptcy due to that. I only say it on the market, regarding your holdings there, better to move your funds if the situation is getting worse.

Can imagine when FTX collapsed, then what about Binance which is currently the largest among others of course this will be a short-term disaster maybe the destruction will be more after Binance because this exchange has many alliances with other institutions.
The market will be in the red for months, many lose confidence in the exchange, but strangely enough they return to the centralized exchange to store assets there.
We know from previous exchange collapses that it is safest to keep assets in your own wallet.

khiholangkang

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Quote from: bayu7adi on August 23, 2023, 09:52:51 AM

I believe it's just going to be a momentary panic, and the crypto market might experience a slight jolt when Binance formally announces its collapse. Keep in mind, this is just a cryptocurrency exchange; if Binance goes down gracefully and returns 100% of its users' held assets respectfully, the primary impact will likely be on BNB.

However, should Binance crumble cunningly, the entire crypto market could undergo a prolonged and notably severe bearish phase. Considering Binance currently holds a significant portion of users' BTC, this alone could be potent enough to disrupt the Bitcoin price when rapidly liquidated into the market.

It all hinges on what triggers Binance's downfall. The worse Binance's global reputation becomes, the graver the extent of the bearish market that the crypto sphere could encounter.

Whatever the problem, it will be the same as what FTX gave to the bitcoin market, moreover Binance being the largest centralized exchange in the world will certainly give a boost to distrust of the market, the wound that will be given will definitely have a long enough time for the market to recover if that happens. .
But I'm not sure that Binance can crash, so far they have protected every problem, always handled it well.
Whatever happens, I hope it will never happen to binance, unless CEX's market dominance can be beaten by other competitors, maybe it won't be too deep a wound that will be given.

Even if binance is able to return money to its customers, it is not trivial.

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

Yes ofcourse. Binance is the top most crypto exchange currently being used by majority of the population. FTX was not even a top exchange yet we know how much it impacted the crypto market.
It began a huge dump in the market and so we can predict that the collapse of Binance would literally begin a huge crash in the crypto market.
It would probably be one of the biggest dumps crypto market would have faced till date. But that's what I think and we never know what might happen.

bayu7adi

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I believe it's just going to be a momentary panic, and the crypto market might experience a slight jolt when Binance formally announces its collapse. Keep in mind, this is just a cryptocurrency exchange; if Binance goes down gracefully and returns 100% of its users' held assets respectfully, the primary impact will likely be on BNB.

However, should Binance crumble cunningly, the entire crypto market could undergo a prolonged and notably severe bearish phase. Considering Binance currently holds a significant portion of users' BTC, this alone could be potent enough to disrupt the Bitcoin price when rapidly liquidated into the market.

It all hinges on what triggers Binance's downfall. The worse Binance's global reputation becomes, the graver the extent of the bearish market that the crypto sphere could encounter.

Plaguedeath

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Only short term effect, you can check Bitcoin during FTX bankrupt in the last year, the Bitcoin price was suffer short term dump and then it regain back after next few months when most of people aren't discuss about FTX.

I believe if there's a withdrawal problem in Binance and they officially announce their bankruptcy, we will see at least 10 threads in this forum talking about Binance, possibly the stupid one will say Bitcoin is scam.

kryptqnick

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Binance is already facing some trouble with the lawsuit by the SEC, and there might be a mildly negative impact of it on the market. Of course, it's going to be a whole other story if Binance just collapses (exit scam, a huge hack they can't get out of, etc.).
Let's see what happened in another case to make an estimate. FTX collapse correlated with a drop from $21k to $16k last November, and then the price recovered in the middle of January. I think Binance has a better reputation, so its collapse might have a higher impact. So something like a sudden 25-30% price drop within a day or two is realistic, and then maybe a few months (around 4, maybe) of recovery.

Z-tight

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Quote from: Afnan_faizah on August 22, 2023, 10:20:48 PM

I hope there is no bad thing happen to binance, it seems that if binance is collapse then it will become really bad sentiments for bicoin market. Although the market will recover again but it might affect the public trust, I realy hope that people out there don't hear any bad news about criptocurrency.

It is not about public trust in my honest opinion, so many centralized exchanges have collapsed or have been hacked both in older and recent events, anyone of the public who pays even the smallest attention to crypto should be aware of these, and know then that any exchange can collapse. They operate with a fractional reserve system, so they can quickly become insolvent if something goes wrong for them. The only thing that can affect public trust towards BTC is a successful attack on its network, which is almost impossible to happen.

Quote from: tech30338 on August 23, 2023, 01:46:45 AM

There is an impact to BTC price if binance falls down, since its one of the top exchange in the market, and also there are lots of traders who uses bitcoin, having million transactions daily and binance close that is a big blow, but at the moment that is a bit hard to happen, Zhao had already prepare for this a long time ago that is why he is in Dubai, the us government putting pressure on him, made this move, because he knows what will happen.

You are one of those who believe in cz that funds are SaFu, and they are too big to fail, take note that no exchange is too big to fail, and if you have your money stored there, you should move it into self custody.

Rikafip

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Quote from: yhiaali3 on August 23, 2023, 01:38:21 AM

The second effect (positive in the long term): the collapse of Binance Crypto Octopus will lead to a decline in centralization and a large return of decentralization to the market, as we know Binance is not only an exchange, but rather a large octopus with arms in all Crypto services, the collapse of Binance will lead to the collapse of this Central system and provide the opportunity for other companies to enter the field and this leads to diversification and increased decentralization. So I think this will be good for Crypto in the long run.

I don't think that people would learn anything from the eventual Binance collapse, like they didn't learn much (or anything) from previous big centralized exchanges collapse. I know people that lost money in Mt.Gox, FTX, Celsius and not a single one of them went 100% DEX and they still mainly use centralized exchanges while some of them even hold large amounts of money for a tiny staking profit. The only one who would really benefit from Binance going down are other centralized exchanges who would get their users and added bonus would be death of bunch of shitcoins.

As for the OP question, there would definitely be a short term impact on BTC price but it would eventually recover and continue with business as usual.

tech30338

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There is an impact to BTC price if binance falls down, since its one of the top exchange in the market, and also there are lots of traders who uses bitcoin, having million transactions daily and binance close that is a big blow, but at the moment that is a bit hard to happen, Zhao had already prepare for this a long time ago that is why he is in Dubai, the us government putting pressure on him, made this move, because he knows what will happen.

yhiaali3

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The collapse of Binance will have two effects on the market in my view, one negative in the short term and the other positive in the long term.

The first effect (negative in the short term): The collapse of Binance will certainly destabilize the market and destabilize confidence in Crypto in general due to the collapse of the largest exchange. Also, the exit of this huge liquidity from the market will certainly have a very large negative impact, this will naturally lead to a decline in the price of Bitcoin and the market All in general.

The second effect (positive in the long term): the collapse of Binance Crypto Octopus will lead to a decline in centralization and a large return of decentralization to the market, as we know Binance is not only an exchange, but rather a large octopus with arms in all Crypto services, the collapse of Binance will lead to the collapse of this Central system and provide the opportunity for other companies to enter the field and this leads to diversification and increased decentralization. So I think this will be good for Crypto in the long run.

DapanasFruit

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All because Binance has already built an empire encompassing the global market for cryptocurrency. its influence and dominance should never be understated...this is just like the dominance of Meta of Mark Zuckerberg in the social media space. Because Binance is involved in heavy trading for different digital assets, its possible fall or collapse can certainly push the crypto market down just like what happened during the time of Mt Gox. It would be a confidence-shaking event and is something that we should never miss to come. However, it will not mean the end of everything as cryptocurrency can certainly survive without it and there will be competing players to fill in the void.

Afnan_faizah

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I hope there is no bad thing happen to binance, it seems that if binance is collapse then it will become really bad sentiments for bicoin market. Although the market will recover again but it might affect the public trust, I realy hope that people out there don't hear any bad news about criptocurrency.

Stable090

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC?

If Binance collapses, it’s really going to affect the crypto market in general. We are going to see a dump, and that will put an end to some altcoins. We all know Binance to be a popular exchange, so if Binance collapses, the bitcoin price is going to dump, but I'm sure it’s going to be temporary, and with time, the bitcoin price is going to bounce back. But if Binance crashes, some altcoins might be able to survive it, while most altcoins are going to crash with it. That’s why altcoin investments are kind of dangerous, if there is bad news, they can crash at any moment. Also, leaving bitcoin on exchange is bad, if the exchange crashes, you are losing your money. It’s better to keep your bitcoin out of exchange.

armanda90

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Generally, Bitcoin will get impact with any exchange got collapse based on what happen during FTX exchange have been scam last several year and bitcoin fell down drastically. But I doubt with Binance as number one of cryptocurrency market will get collapse like FTX because they operation for long time and impossible will get the same thing like FTX. As usual, Bitcoin depend on good or bad news will make price up and down, exchange market is the most important part for bitcoin when getting good news will up to higher price but when any exchange get problem or collapse its right moment for selling bitcoin assets and buy back later with lower price.

Can't imagine what happen later if Binance as top global exchange around the world get collapse for huge impact with bitcoin price, get chance drop more than 10% if Binance indicate will collapse although its impossible thing.

Kiedx

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If Binance were to shut down completely, it would have a significant impact on the crypto and bitcoin markets, as well as on the millions of users who rely on the exchange for their trading and investing needs. Here are some possible consequences of a Binance shutdown:

wxa7115

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

The impact will be huge, even if Binance is not as dominant as Mt Gox was at the time, Binance is more than just an exchange, as binance also has its own coin and their own stable coin as well.

So the fall of binance will have huge implications for this market especially altcoins, so I would expect a generalized drop at that point and a loss of confidence we have not seen since the crypto winter, also I think it is possible governments around the world will try to get the collapse of Binance to coincide with the upcoming bull run as a way to hinder this market as much as possible.

Darker45

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Binance is an influential player in the crypto industry, so I guess its collapse will have a detrimental effect on Bitcoin's price. However, this will all be temporary. Bitcoin will eventually recover. Binance isn't Bitcoin.

And since there are already precedents, this collapse won't be as shocking. Mt. Gox collapsed. FTX collapsed. Many others collapsed. There isn't a crypto exchange that's too big to fail. We've known that at least.

On the other hand, the collapse of another giant centralized platform should bring precious lessons. Whether we learn these lessons or not doesn't matter. It will forever stay as a reminder. Self-custody is always the best option.

PX-Z

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It will be a catastrophe for sure, worst than FTX incident. Not just in crypto space but also on other company where binance invested, there will be lot of company who file bankruptcy due to that. I only say it on the market, regarding your holdings there, better to move your funds if the situation is getting worse.

Wimex

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

Quote

Would it shake market confidence and affect $BTC?

If something were to happen with the Binance platform, you can simply choose to use other wallets to store bitcoin, and yet nothing guarantees that the same will not happen to these, that is, that at some point they will fail or be discontinued, it is That is why it is better to look for alternatives with more reliable characteristics. It is also true, as many say, that this event probably does not affect the market directly or in an exaggerated way, it may cause a certain downward movement, but it is not something that will affect that much. , since it is possible to recover quickly. Now, I am sure of something, and that is that the users who placed their trust in storing their assets in that specific wallet, if it affected them directly, because what can happen in this case is that everything they stored there ends up frozen, in short...lost, with the only alternative to start over. It is for this reason that most advise not to have all the assets in a single wallet, to protect yourself from such a situation and not run out of any capital.

Woodie

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC?

I think we have seen this attack happen on Binance one too many times concerning regulation etc, and this has always left a mark on the markets and leaving the markets in the red thanks to the influence they have on it. And if we want to see growth of the crypto markets, trouble shouldn't come looking for any of the top exchanges!!!

Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

Of course it will rattle the markets and not affect bitcoin price only! With how these go, am thinking maybe if we ignore or kick out regulation we can do better... but then again regulation could give the cryptospace the exposure it needs to expand and it's really a situation of being stack between a rock and a hard place...we still need regulation after all which Bitcoin is known to evade Roll Eyes

Nwada001

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Not just Binance, but I believe any crypto exchange that is popularly used by traders and has a high trading volume above $1 billion can, at some point, break down the crypto market and cause it to drop at least for a certain number of days.

And Binance failing today means most crypto will liquidate, as there are so many coins listed that their major volume is on both BNB and BUSD, which are the two major tokens of the exchange, and the exchange failing means those coins are going to experience a drastic fall in price, just as what happened to Luna stablecoin will likely happen to that of BUSD, as the major reason the BUSD is retaining its value against the dollar is because the exchange has enough liquidity to back that up. So for Binance to fall, everything under them is going to lose value, and that is going to cause a great loss on the crypto market and a lot of volume will be removed from the market.

Z-tight

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Quote from: Zlantann on August 22, 2023, 03:14:23 PM

Nobody expected that FTX will collapse because there was no sign of such an occurrence.

This is not true, before ftx collapsed there was rumors that they were insolvent and during that period cz liquidated the ftt tokens that binance were holding, it was almost obvious that ftx was going to collapse, but everything was called fud. There was even a thread in this forum telling people to withdraw their funds, but many people didn't believe it; you should check it out: https://bitcointalksearch.org/topic/--5419710

Quote from: Zlantann on August 22, 2023, 03:14:23 PM

Don't also forget that these exchanges keep their financial transactions secret and their entire audit reports are not made public.

It doesn't matter, even if they decide to declare proof of reserves or not, what you need to understand is that most centralized exchanges operate with a fractional reserve system.

Quote from: Zlantann on August 22, 2023, 03:14:23 PM

These platforms are controlled by individuals who can make financial errors. And a single management error can wrench or collapse an assumed strong exchange.

I don't call it errors, they use customer funds for risky businesses, trading and gambing, that is how fractional reserve works, so they are just one big loss away from losing people's funds and going insolvent. Nobody should believe that any exchange is strong, withdraw your money into your self custody wallet.

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

Binance is a major player in the cryptocurrency space, so its fall will affect the price of all cryptos. It will promote FUD and make investors lose confidence in the sector. But Bitcoin doesn't depend on exchanges for its smooth operations. One can have access to Bitcoin without these exchanges. So It will affect the price of Bitcoin for a few months and the market will gradually recover afterward. But one of the benefits is that it will promote the spread and adoption of decentralized platforms.

Quote from: Z-tight on August 22, 2023, 01:08:37 PM

Quote from: ZAINmalik75 on August 22, 2023, 12:36:22 PM

Is there any current issue ongoing with Binance of which I am not aware of? Because IMO there are small cases ongoing with Binance which are not that big enough to worry about because other than this exchange all other consisting exchanges are also facing many cases.

Don't believe funds are SaFu, or that binance is too big to fail and this is only fud, the centralized exchanges and earning and lending platforms that have collapsed in recent events also called everything fud, until they actually collapsed and people who were exposed to them lost a lot of money. I am not saying that i know for sure that Binance will bite the dust, but the people holding their funds there should move it into self custody. Even if Binance isn't going to collapse, not your keys is not your coins.

Nobody expected that FTX will collapse because there was no sign of such an occurrence. Don't also forget that these exchanges keep their financial transactions secret and their entire audit reports are not made public. These platforms are controlled by individuals who can make financial errors. And a single management error can wrench or collapse an assumed strong exchange. As much as I know, no exchange is infallible, so we should take necessary precautions.

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

Another FUD thread. Are there information about Binance now that is instigating fear in the news? Could it be another question whose answer everyone knows? We all know that even if all the exchanges collapse, it will just take small time for new exchanges to surface and continue trading. The effect will pull down the market price temporarily and everything will normalise with time.

The advice that people should avoid keeping huge amount of money on the exchange is loud to the hearing and understanding of everyone, but the will to put the advice to practice is where the problem lies

Mr.suevie

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Quote from: GeorgeJohn on August 22, 2023, 02:08:07 PM

Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

The thing is that binance hold the largest exchange across the world, but that doesn't mean that it will affect market, because the thing people does with binance is as result of exchange and their is no other things in bitcoin, we have so many exchange where you can exchange your coins to a traditional currency, so it doesn't mean that without binance exchange of cryptocurrency and especially bitcoin
and bitcoin can't take effect, so many other exchanges are there to be use base on the country you find yourself.

Well for me I think it's quite the opposite because even if there are lots of other exchanges out there binance still hold a massive capacity when it comes to bitcoin transaction and trading that's why it's fall is definitely going to affect the bitcoin price market and also it's definitely going to cause a massive dip in the price. Ftx is not as merely big as binance but we all saw the impact of it's fall to the price of BTC last year.

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Quote from: avikz on August 22, 2023, 12:56:08 PM

It will be disastrous! Binance is the topmost crypto exchange with a daily volume of more than 4 billion dollars. If Binance gets into trouble, the Bitcoin will get into trouble as well. A this trouble will be much bigger than FTX or MTgox trouble. This might pollute the crypto market for next couple of years.

Let's just hope and pray that it doesn't happen!

I don't agree that it would be bigger than Gox.

In 2013 Gox was the biggest exchange by far and the market was much smaller. A much larger % of coins was on exchanges, ready to be traded, there was no HODL culture, like we have now, bitcoin wasn't recognized as a store of value, more like a novelty. It wasn't even a speculative asset and there were no laws and regulations regarding it. The impact of the collapse of the largest exchange was enormous at that time, especially that Karpeles was actively influencing the price of bitcoin and trying to earn back what he'd lost. Gox was like FTX, but with a much bigger impact as most people traded there at that time.

We don't know if Binance is involved in wash trading and if they have all the coins that they owe to people. There's a possibility they do. Chances are that even if they happen to shut down, they'll be able to make their users whole, unlike Karpeles that had lost most of the bitcoin before the exchange's collapse and was delaying withdrawals to keep his company going.

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

It will not be unexpected. FTX collapsed, Binance can also collapse, just as other exchanges can too. It is wise to expect these things so you continue with the consciousness of not storing your bitcoins in any of these exchanges no matter how solid they may look and also so you will not be surprised when they happen.

Binance is a big exchange, and it's collapse will surely have a huge effect on the price of bitcoins and all the things you have mentioned may happen including also affecting the trust that people who have little information about bitcoin have for it. But no matter what, it will not be the worse and bitcoins will surely bounce back and find a way to keep going.

Bitcoin is bigger than Binance and bigger than all other exchanges.

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

The thing is that binance hold the largest exchange across the world, but that doesn't mean that it will affect market, because the thing people does with binance is as result of exchange and their is no other things in bitcoin, we have so many exchange where you can exchange your coins to a traditional currency, so it doesn't mean that without binance exchange of cryptocurrency and especially bitcoin
and bitcoin can't take effect, so many other exchanges are there to be use base on the country you find yourself.

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

Binance is no. 1 exchange in term of volume thats why if Binance faced any trouble then obviously we will see short term bad impact on htc price too but this impact will not remain for long time and Bitcoin will recover back after some time. previously many exchange faced trouble like FTX and impacted btc price also for months or two but after that recover with same speed. actually when big exchange collapse, it increase the fear in the market which force weak hand to sell btc in panic but with the passage of time every thing comes to normal and people use other exchange for buy/selling.

Quote from: ajiz138 on August 22, 2023, 01:36:14 PM

The security priority is to store in hardware wallets or hotwallets that have seed phrases, if you still store on exchanges then don't expect it to be safe even on Binance or other exchanges that have other security features.

Yes without seed phrase we have no controlled over our fund and we cannot say that our Btc is safe because anything happens with these exchanges and then we could not do anything if they stopped withdraw function. Its very bad habit that if someone want to hold btc for long term and still holding in cex. The first priority is to use hardware wallet and if not available then open source hot wallet like electrum is best option

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Quote from: Samadmalik826 on August 22, 2023, 01:12:39 PM

You're absolutely right, being cautious and vigilant is crucial. While there's no news confirming the Binance scenario, your analysis is grounded. A potential Binance collapse could indeed lead to market turmoil, especially for BNB and BUSD holders. Prudent to prepare for such scenarios and prioritize security.

I was wondering why you quoted me without including my link, is this a habit of yours? Honestly, I feel bad seeing quotes like this.

The security priority is to store in hardware wallets or hotwallets that have seed phrases, if you still store on exchanges then don't expect it to be safe even on Binance or other exchanges that have other security features.

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Long term it wouldn’t even be a blip on the radar but short term a hypothetical binance collapse would be catastrophic for the price. We would see probably the biggest red candle in bitcoin history. Obviously there woupd be lots of willing buyers but short term we would dump hard.

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Quote from: ajiz138 on August 22, 2023, 01:01:49 PM

I searched for news today but didn't find it, maybe this is just our speculation. Cheesy

If the Binance exchange that is number one at the moment collapses in the future it will cause a big bloodbath in the market, more whales are there of course more will panic especially those as BNB and BUSD holders this will have a significant impact on a sharp dive and we can imagine if this happens.

There will be many casualties as with FTX but I don't think this is happening anytime soon although I am always vigilant and never hold assets on any exchange.

Quote

You're absolutely right, being cautious and vigilant is crucial. While there's no news confirming the Binance scenario, your analysis is grounded. A potential Binance collapse could indeed lead to market turmoil, especially for BNB and BUSD holders. Prudent to prepare for such scenarios and prioritize security.

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Quote from: ZAINmalik75 on August 22, 2023, 12:36:22 PM

Is there any current issue ongoing with Binance of which I am not aware of? Because IMO there are small cases ongoing with Binance which are not that big enough to worry about because other than this exchange all other consisting exchanges are also facing many cases.

Don't believe funds are SaFu, or that binance is too big to fail and this is only fud, the centralized exchanges and earning and lending platforms that have collapsed in recent events also called everything fud, until they actually collapsed and people who were exposed to them lost a lot of money. I am not saying that i know for sure that Binance will bite the dust, but the people holding their funds there should move it into self custody. Even if Binance isn't going to collapse, not your keys is not your coins.

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For us to have a little idea of how the collapse of Binance would be on bitcoin price, let's start with the FXT exchange that collapsed last year, and how the effect was on bitcoin price.

It was learned that during the collapse of the FXT exchange, the crypto market was under pressure because of that, and that got Bitcoin and crypto projects to fall badly because of the FXT collapse. Bitcoin went from $21k - $16k in the following weeks. And all the crypto projects fell by 22% in less than a day.

Having said that, if FXT exchange can have bitcoin fall in price from $21k- $16k, and other crypto projects fall in price by 22%. what now happens if the number one exchange "Binance" collapse? It will be a big catastrophe in the crypto market that the whole world won't stop talking about how bitcoin price fell drastically.

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Quote from: _act_ on August 22, 2023, 11:27:02 AM

If Binance collapse, bitcoin price would fall, but altcoins will suffer more as their prices will fall more. Binance coin would fall most and significantly and investors will lose significantly. BUSD may likely depeg.

But after bitcoin fall, the price will increase back. Bitcoin does not depend on Binance.

Quote

Correct. Binance collapse affects Bitcoin and altcoins, with Binance Coin hit hardest. Bitcoin's independent value often leads to recovery post-crises.

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

If Binance faces trouble then market will also face trouble. We have seen many past events in which market was dumped but the news or I should say bad news coming from Binance. For example a recent news of not getting withdrawal from Binance in Europe using SEPA or Euro is also troublesome for the users and one user who was getting replied from a bot then corrected by human support that these deposits and withdrawals are working and will work for 25 September and Binance announced by then they will find an alternative to it.

But the point is in the journey and in thus tension many other people stuck and many transaction got struck. AFAIK. If I am wrong then please correct me. But stucking and halting the withdrawals in BTC become a huge headache for the market too. And this is not something new as in May when a huge amount of transactions were halted due to Ordinal problem then at that time Market faces a lot of pressure and due to less demand and more supply price fluctuated highly. And after that the US sued Binance. And that sue case also made market so volatile.

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I searched for news today but didn't find it, maybe this is just our speculation. Cheesy

If the Binance exchange that is number one at the moment collapses in the future it will cause a big bloodbath in the market, more whales are there of course more will panic especially those as BNB and BUSD holders this will have a significant impact on a sharp dive and we can imagine if this happens.

There will be many casualties as with FTX but I don't think this is happening anytime soon although I am always vigilant and never hold assets on any exchange.

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

It will be disastrous! Binance is the topmost crypto exchange with a daily volume of more than 4 billion dollars. If Binance gets into trouble, the Bitcoin will get into trouble as well. A this trouble will be much bigger than FTX or MTgox trouble. This might pollute the crypto market for next couple of years.

Let's just hope and pray that it doesn't happen!

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Quote from: hd49728 on August 22, 2023, 11:23:27 AM

Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC?

It will have affect on cryptocurrency market in general and on Bitcoin too.

But very fortunately exchanges come and go, Binance is the same and they came here, became a biggest exchange but they can go in future, die or shut down their service. Market can have a short term shock which will do affect all market and Bitcoin trading, price and volume will be affected too but in long term, Binance will be like one piece of history. If Binance goes away, another exchange will replace it as a new biggest one and the cryptocurrency market will keep operating.

Quote

Indeed, a Binance issue might briefly impact the crypto market and Bitcoin. Exchanges change, but the market's resilience ensures continuity. New players can step in, upholding the ecosystem's longevity.

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

Is there any current issue ongoing with Binance of which I am not aware of? Because IMO there are small cases ongoing with Binance which are not that big enough to worry about because other than this exchange all other consisting exchanges are also facing many cases.

And I am also agreed on some of your points that fall of Binance would bring fall of temporary fall in market. As in many of the previous events we have seen that Binance has great impact on the market. So, there is no doubt in your topic. We should not only be aware of the changes happening with Binance but other exchanges too. Because sometimes, hype of one exchange is just a cover for another. I am talking about Houbi exchange.

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Bitcoin will end up receiving a couple of punches, but 99.9% of altcoins will receive a brutal beating. After that, it will for sure be another long winter as it would take time for the masses to have trust on bitcoin/crypto again.

One thing's for sure — I surely don't hope for that to happen, but if it does, it would be a god-tier accumulation period. Always make sure you have dry powder.

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

Yeah, likely that it will shake the market but the world won't stop for them. That means that it will temporarily going to shake the market but then, once everyone is set and fine again then things are going to come back normally again as it recovers.

With those names that's known globally, with some few articles that they release the market moves. How much more with Binance that has billions in liquidity and volume, so definitely that it will affect the market all of a sudden.

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

Of course Binance's default would impact the whole crypto market negatively, at the end we're talking about the biggest exchange in the world. At the same time it wouldn't be the first time that some big exchange fails, and probably it wouldn't be the last either, so after a while the price will recover. When FTX failed it's not been as bad as I was expecting to be honest but Binance is another level.

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices.

It will definitely affect the entire cryptocurrency space because we can’t deny the fact that most naive people have come through binance to cryptocurrency. Just like what _act_ pointed out, bitcoin will definitely bounce back after it will have face a long period of uncertainty in price but as for Alticoins they are some that will definitely collapse because most of this exchanges are where there are stored so many will lose this coins totally.
Also the adoption rate will be affected for a bit because of the name binance has created for itself. The biggest losers will definitely be traders using the exchange.

The positive side will be that many people will be looking for new exchanges and That is where the advocation of decentralized exchanges will come into play and probably will grow its adoption.

Overall the market will experience almost similar scenario like the Mt Gox collapse

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We have discussed about binance possibly biting the dust so many times, and you should not be worried about BTC should binance bite the dust because Binance doesn't control BTC. The people who are going to face the most troubles are those who hold their funds in binance and the users who hold too many shitcoins.

Binance collapsing means people using the exchange as a bank are going to lose their funds, and many shitcoins are going to collapse out of the market with it, BTC has its many usefulness and this can't affect the network in itself, but because there are so many people using BTC on binance, the price of BTC is going to drop temporarily, so you can buy more coins if that happens. Shitcoin holders and people who don't hold funds in self cusody are the ones that this is going to affect the most if it happens.

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Being the number one exchange means a lot and having them begone means a terrible amount of people who are trading to be out of their money and probably will resent everything about cryptocurrency. This has a chance to happen if they are putting their eggs only in one basket.

For sure it will be a collapse for some time but it can recover if someone were to take its place. For sure there are the majority of users of Binance that will find somewhere else, probably with a decentralized exchange now which is getting more popular.

I hope people would get a hang of handling their own BTC.

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

let's chat about what could happen if #Binance faced trouble.

Something terrible will happen to it users, they will understand why not your keys equals to not your coins, they will have no remedy to reclaim back their assets, while Binance will have nothing to do about it than CZ watching the whole show in his hidden place, users of Binance CEX are in trouble of loosing their entire coins.

Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Would it shake market confidence and affect $BTC?

I don't think so since the majority of bitcoin users and whales are not on centralized exchanges, but the news and shock will create a move that can make a little difference on the market considering the worth of asset that will be laid off due to this ugly scenario if it ever happened.

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If Binance collapse, bitcoin price would fall, but altcoins will suffer more as their prices will fall more. Binance coin would fall most and significantly and investors will lose significantly. BUSD may likely depeg.

But after bitcoin fall, the price will increase back. Bitcoin does not depend on Binance.

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Quote from: Samadmalik826 on August 22, 2023, 11:20:39 AM

Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC?

It will have affect on cryptocurrency market in general and on Bitcoin too.

But very fortunately exchanges come and go, Binance is the same and they came here, became a biggest exchange but they can go in future, die or shut down their service. Market can have a short term shock which will do affect all market and Bitcoin trading, price and volume will be affected too but in long term, Binance will be like one piece of history. If Binance goes away, another exchange will replace it as a new biggest one and the cryptocurrency market will keep operating.

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Hey all, let's chat about what could happen if #Binance faced trouble. Would it shake market confidence and affect $BTC? With Binance's high trading volume, its challenges might lead to caution, causing short-term dips. Traders might shift to other exchanges, influencing prices. Regulatory concerns could escalate, impacting Bitcoin temporarily. While history shows events impact prices, the crypto market is intricate. This isn't about fear, but discussion. Stay informed, diversify, and be ready for anything. Share your respectful insights on whether a Binance issue would truly rattle Bitcoin's price. Remember, this is just speculation, not financial advice

Topic: Potential Impact of Binance Collapse on Bitcoin ($BTC) Price (Read 356 times)