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.

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.

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

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.

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.

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!

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.

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.