The impact of crypto exchanges is greater than we thought

[MrSpasybo]

OKEx, one of the world’s biggest cryptocurrency exchanges, announced a temporary suspension of withdrawals on Oct. 16. Upon the news, the price of Bitcoin (BTC) abruptly plunged 3% in 30 minutes across major exchanges.

Immediately after the OKEx statement was released, the price of Bitcoin dropped from $11,514 to $11,190. The 3% drop occurred within a 30-minute span, causing a market-wide pullback.

Article: Why Bitcoin price abruptly dropped 3% in 30 minutes on OKEx freeze

Many people think that exchanges are just tools for users to trade and liquidate crypto assets, and there are thousands of crypto exchanges and users have as many alternatives as needed. However, the OKEx incident has shown us another side, that a problem with a crypto exchange can greatly affect the entire crypto market in a way that is hard to imagine.
Is this how DEX will become an inevitable trend in the future ?!

[@chison]

This incident puts fears on holders and investors. So many persons sit on the fence because of how volatile crypto currency is any little thing they dump their token. Okek is seen as a big exchange so news from there can affect. The Kucoin hack has not cleared yet then this.

[expander]

In my opinion, the problem of bad news around crypto will indeed greatly affect prices. Especially if the news comes from a large exchanges like OKEx. This of course has implications for many coins. And I think this will apply to DEX too.

[Black ID]

In fact, exchanges have a huge effect on both the coin price and the coin rate. Because if there is bad news on the exchanges it is very likely that the coin price will also go down. This happens because some coin owners who hear or read bad news about crypto in any case panic and sell their coins. Something similar like this can happen to DEX too. The bottom line covers everything in crypto.

[TomPluz]

Exchanges whether centralized or decentralized can affect the price movement of any cryptocurrency, however this all depends a lot on how big is the influence of the exchange in the total marketplace. Small exchanges with low volume may not be making any dent at all. OKEx is certainly one of the top 10 big exchanges we have (I hope I got the raking right) so it has a pervasive influence which eventually resulted into a little decrease of Bitcoin price. Eventually, whatever can happen to OKEx will be balanced by other existing exchanges, there can just be a transfer of business but for the meantime we can all feel the impact. The story of MtGox illustrated how an exchange can change things and stop a market's momentum.

[Alcor]

It could have been just a coincidence. The drop in the bitcoin price by three percent could have caused not only a temporary suspension of the issuance of funds by the OKEx exchange, because there can be a lot of such factors at the same time. Even the sale of a decent batch of bitcoins in the cryptocurrency market could have caused a drop of three percent due to other circumstances, and not only for this reason. The sale of cryptocurrency could also be caused by this reason, but in such situations it will not always come exactly to such consequences. The chain of coincidences can be different and the most incredible.

[hushpupppy]

Crypto currency exchanges are definitely of good importance and value; as they facilitate the exchange of tokens and allow trades  to take place too. But you do not have to over exagerrate the impacts of crypto exchanges.

While using exchanges, always do your own research, and always trade with care and security.

[Seerge]

Only large exchanges can affect Bitcoin's price changes, not small exchanges.  That's my opinion !
But is it true that Okex's decision to stop withdrawing  temporarily was the cause of this drop in Bitcoin prices, I don't think so.  What can affect the decline in Bitcoin prices is usually if there is a large Exchange that is hacked, which usually affects the decline in Bitcoin prices.

[Hope4life]

It's kinda bad news actually for crypto space, it's actually not only create bitcoin crash in short period. It'll trigger other people that new in crypto to be fear to hold or trade their token in crypto exchange. One thing we can understand from OkeX accident is no matter how big or famous the exchange have, it's not guarantee that your fund is safe.

[Quantum X]

Okek is seen as a big exchange so news from there can affect. The Kucoin hack has not cleared yet then this.

This might be one of the reason. Influence always has the power to create any signs of changes whether it is positive or negative. Yet as what we always see btc is just like affected for a certain period of time and yet it bounce back after.

[bigcash2011]

Decentralized exchanges still need a lot of infrastructural support and improvements to go mainstream and it may achieve that with time but at the moment top centralized exchanges have the most volume and literally they are controlling the market. Binance has been the leader from last few years, I think its time all these exchanges work to help with the mass adoption.

[mohdelayo]

The volatility of the crypto market comes from that particular fact that the cryptospace react very quickly to every information, be it a positive or negative information.

[Renampun]

Of course, the exchange has an impact on Bitcoin's price movements even if it's not very large...
by stopping the withdrawal or deposit, the Bitcoin buying and selling activity will stop and it will definitely affect the price of Bitcoin, so the role of the exchange is very crucial.

[labonikhatun]

You are right that the exchange will have an effect on bitcoin if there are no exchange sites it will have a negative effect on crypto however as long as we have crypto good and reliable sites will not be shut down. These will become more popular when it comes to bitcoin investing and exchanges it will take a long time for the deposit to close and take effect.

[indexx]

of course DEX will greatly affect the crypto economy, especially now that DEX technology continues to be well developed. of course this will make the quality of DEX even more perfect.