Can Bitcoin Weather Binance’s Record-Setting Crisis?
Bitcoin remained near $77,926 at 11:02 UTC on Monday, roughly 2% above its post-incident low, while Ether traded at $2,285.83. The relatively steady prices suggested that traders were absorbing the Binance crisis without triggering a broader digital-asset selloff.
Bitcoin Finds Support After the Weekend Slide
The sharpest decline came on Friday afternoon, Oct. 30, when Coinbase’s BTC-USD market reached $76,141 at 18:50 UTC. Bitcoin later recovered into the upper-$77,000 range, indicating that buyers were prepared to enter the market despite continued concern about the exchange breach.
The rebound was notable because investors were responding to one of the largest thefts ever reported in the cryptocurrency sector. Instead of extending the decline, the market established a short-term floor and began trading with greater stability.
Customers Withdraw Billions as Binance Reopens
Binance began restoring withdrawal services in stages at 06:00 UTC on Sunday, Nov. 1. The move followed a temporary suspension introduced while the exchange investigated the security incident and completed protective checks.
During the first nine and a half hours, customers withdrew approximately $4.649 billion and deposited about $1.01 billion. The resulting net outflow was close to $3.64 billion, equal to roughly 2.1% of the $171 billion in customer assets listed in Binance’s Oct. 28 proof-of-reserves report.
Although the volume was substantial, the flow did not appear to develop into an uncontrolled run. Binance said withdrawals eased after the initial surge and were stabilizing, a sign that the exchange believed its systems could manage the demand. The company has covered most of the stolen assets and stated that customers would not bear the losses.
ETF Selling Did Not Push Bitcoin Lower
Bitcoin also faced pressure from U.S. spot exchange-traded funds. Those products recorded $643.3 million in net outflows on Friday, with BlackRock’s IBIT accounting for $233.7 million and Fidelity’s FBTC reporting $201.0 million in redemptions.
Friday was the first U.S. trading session after the breach began following Thursday’s market close. American investors therefore had their first opportunity to react directly, yet the heavy ETF selling did not force Bitcoin back towards its lowest level of the day.
Holding above that low suggests that other buyers were willing to absorb the selling. It does not remove the risks surrounding Binance, but it shows that the incident had not yet overwhelmed demand across the wider market.
North Korean Group Blamed for the $6.3 Billion Theft
Blockchain investigators have estimated the damage at more than $6.3 billion. TRM Labs and Chainalysis have linked the operation to TraderTraitor, a North Korean hacking group also identified by U.S. authorities.
Binance has promised to absorb the losses through its Secure Asset Fund for Users, corporate funds and other internal resources. The exchange has also worked with blockchain partners to freeze billions of dollars in affected assets, while reporting that it had covered most of the stolen value.
That commitment appears to have helped prevent a deeper confidence shock. Customers still moved large sums off the platform, but the initial withdrawal wave showed signs of moderating rather than accelerating into a full-scale collapse.
Geopolitical Risk Adds More Volatility
Crypto traders are also watching developments involving Iran and Washington as the U.S. midterm elections approach. Israeli Prime Minister Benjamin Netanyahu has reportedly urged President Donald Trump to take military action against Iran after the vote, while Trump has indicated that diplomacy still has time to work.
Trump told reporters that discussions with Tehran were progressing and that he was not in a rush. Secretary of State Marco Rubio likewise said no final decision had been made, leaving markets to weigh the possibility of a sudden geopolitical shock alongside the unresolved Binance fallout.
