On Friday, 30 October, it emerged that the Binance hack had resulted in the loss of around $6.3 billion in various cryptocurrencies, making this attack the largest in the history of the crypto market. Cryptocurrency prices began to fall: Bitcoin hit a one-month low, dropping to $76,400. Overall, the crypto market lost around $100 billion in market capitalisation in half a day, reports RBC.
On 1 November, Binance began restoring withdrawal functionality. Later that day, it reported that in the first 9.5 hours, clients had withdrawn $4.65 billion from the exchange, whilst deposits totalled $1.01 billion. The net outflow reached $3.64 billion, or around 2.1 per cent of the exchange’s assets, valued at $171 billion.
As of 11:00 Moscow time on 2 November, the BTC price was hovering around $78,100, having risen by 0.4% over the past 24 hours. Ethereum (ETH) rose by 0.8% to $2,280. Binance’s $BNB token rose by 0.2% to $707.
Against the backdrop of the Binance hack, US spot Bitcoin exchange-traded funds (ETFs) recorded their largest net daily outflow in four months at the close of Friday’s trading session. According to SoSoValue, this amounted to $643 million — the highest since 25 June. Around $156 million was withdrawn from Ethereum funds.
The record-breaking theft sent the crypto market’s Fear and Greed Index plummeting. Since 30 October, it has been in the ‘fear’ zone, a territory it had not entered for more than two months. On Monday, it stood at 37 points out of 100. This suggests that investors are more inclined to sell cryptocurrencies than to buy them.
‘There is no reason to expect a market crash’
The scale of the Binance hack is unprecedented, but the market has reacted to it fairly calmly, says cryptocurrency market analyst Roman Nekrasov. In his view, this is because Binance is showing no signs of insolvency and has promised to compensate for the losses.
“If no new problems arise, Bitcoin could hold within the $76,000–$80,000 range and gradually return to $82,000. However, if reports emerge of further losses or payment issues, the pressure will intensify, and a drop below $76,000 will pave the way for a fall to $72,000–$74,000. “For the time being, there is no reason to expect a market crash,” Nekrasov is confident.
Analysts surveyed by The Block believe that investors will remain cautious in the near future, and therefore a moderate outflow of funds from ETFs may continue. However, there is no panic in the market, and the current negative sentiment is more a matter of caution than fear, according to the experts.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
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