Can Bitcoin Weather Binance’s Historic Security Crisis?
Bitcoin remained resilient above $77,000 as Binance gradually restored customer withdrawals after a record-breaking cyberattack. At 11:02 UTC on Monday, Bitcoin was trading at $77,926, according to CoinGecko, about 2% above the post-attack low calculated by Unchained. Ether was changing hands at $2,285.83, suggesting that the two largest digital assets had regained some composure after a turbulent end to the previous week.
The market’s sharpest decline came on Friday afternoon, Oct. 30. Coinbase data showed the BTC-USD pair falling to $76,141 at 18:50 UTC. Its recovery into the upper-$77,000 range indicated that buyers were prepared to enter the market even while news of the Binance breach continued to dominate cryptocurrency coverage.
Withdrawal Access Returns in Carefully Managed Stages
Binance began lifting its withdrawal suspension at 06:00 UTC on Sunday, Nov. 1. Rather than reopening every service at once, the exchange restored access in phases, allowing it to monitor transactions and assess whether customer activity remained orderly.
During the first nine and a half hours, customers withdrew $4.649 billion and transferred approximately $1.01 billion into the platform. The difference produced a net outflow of roughly $3.64 billion. Binance said that amount represented about 2.1% of the $171 billion in customer assets listed in its Oct. 28 proof-of-reserves report.
The scale of the withdrawals was substantial, but the pattern did not resemble an uncontrolled rush for the exits. Binance reported that the initial wave had eased and was stabilizing as expected. That trend gave the exchange room to reassure customers that market conditions remained stable and that the platform could handle the demand without disrupting normal operations.
Bitcoin Absorbs Heavy Institutional Selling
Bitcoin’s ability to hold its ground was particularly notable because the cryptocurrency market was facing considerable pressure from exchange-traded funds. U.S. spot Bitcoin ETFs recorded $643.3 million in net outflows on Friday, according to SoSoValue, marking a significant withdrawal of capital from investment products often used as a measure of institutional demand.
BlackRock’s IBIT posted the largest reported redemption at $233.7 million, while Fidelity’s FBTC registered outflows of $201.0 million. Together, those two funds accounted for much of the day’s selling pressure.
Friday was also the first U.S. trading session after the Binance incident began following Thursday’s market close. American investors therefore had their first opportunity to respond to the breach through regulated market products. Even with that reaction, Bitcoin did not revisit the session’s low over the weekend, a sign that other buyers were willing to absorb the selling.
The Theft Ranks Among Crypto’s Largest Recorded Breaches
The broader concern stems from the estimated size of the attack. TRM Labs and Chainalysis have both placed the stolen amount above $6.3 billion, making it one of the most damaging incidents in cryptocurrency history. Their investigations have pointed to TraderTraitor, a North Korean hacking group also associated with the Lazarus network, as the likely perpetrator.
Analysts reported that approximately $6.36 billion moved from Binance wallets across multiple blockchains, with much of the activity occurring within roughly 20 minutes. The suspected group has previously been linked to attacks against digital-asset businesses, adding weight to the attribution while investigators continue tracing the stolen funds.
Binance has sought to prevent the losses from becoming a direct burden for customers. The exchange committed to covering the shortfall through its SAFU emergency fund and corporate resources. That pledge appears to have helped contain fears of a wider run, particularly after withdrawals resumed and deposit activity continued alongside the outflows.
Geopolitical Risk Adds Another Source of Volatility
Cryptocurrency traders are also watching developments beyond the exchange crisis. U.S. midterm elections are scheduled for Tuesday, and uncertainty surrounding Washington’s possible response to Iran is adding another layer of risk to an already unsettled market.
Israeli Prime Minister Benjamin Netanyahu reportedly pressed President Donald Trump to authorize an immediate strike against Iran after the vote, according to Axios. Trump has appeared less eager to move rapidly, telling reporters on Saturday that discussions with Tehran were progressing well and that he was not in a hurry.
Secretary of State Marco Rubio expressed a similar preference for caution, saying that no final decision had been reached, according to Iran International. As the new trading week begins, Bitcoin is therefore confronting two separate tests: whether confidence in Binance can remain intact after the hack, and whether geopolitical tensions trigger a fresh flight from risk assets.
