Bitcoin Slides Toward US$77,000 After Binance Hack

Hackers stole about US$6.3 billion from Binance on Thursday 29 October, according to Binance’s estimate and TRM Labs’ estimate of US$6.36 billion. Binance paused withdrawals on several networks as a precaution. The theft damaged confidence in a major exchange and raised fears about forced selling or wider market problems.

Bitcoin was trading at US$80,746 at 19:00 UTC on Thursday. It fell to US$78,771 an hour later and US$77,788 by 23:00 UTC. TRM Labs said money began leaving Binance wallets at 20:05 UTC, with a second wave around 23:05 UTC. Bitcoin lost 4.30% that day.

Friday brought another shock from falling technology stocks. Bitcoin closed at US$77,192, down 0.75% that day and 4.79% from the previous Friday. Binance says it will cover all losses, but markets are watching withdrawals and whether unfreezable stolen assets reach exchanges.

Binance is a major cryptocurrency exchange, described in the article as the world’s largest. An exchange is a marketplace where people trade digital coins. It also holds customer assets and processes withdrawals. That makes a serious security incident more than a company problem: it can raise questions about access, liquidity, and confidence across crypto.

The Binance theft illustrates the mechanism. After about US$6.3 billion was taken, Binance paused withdrawals on several networks. Bitcoin then fell 4.30% on Thursday, while Ethereum, Solana, and XRP also declined. Investors could sell other coins because they wanted less exposure to exchange and market risk.

Binance says user funds are safe and that it will cover losses using company funds and its SAFU reserve. TRM Labs said about US$2.7 billion had been frozen by Friday. Markets are watching whether withdrawals reopen as promised and whether roughly US$2.4 billion in unfreezable assets moves.

About US$6.3 billion was stolen from Binance, with TRM Labs estimating US$6.36 billion. That makes the incident enormous in absolute terms and the largest theft mentioned in the article. Its importance also came from where it happened: Binance is a major exchange and a central venue for crypto trading.

The article gives useful details about the stolen assets. TRM Labs said about US$2.7 billion was frozen by 00:30 UTC on Friday, mostly stablecoins frozen by their issuers. About US$2.4 billion remained in assets that issuers cannot freeze. Those figures show that much of the theft was still potentially relevant to markets.

However, the article does not state total trading volume, total assets held, or the combined value of major crypto markets. A precise comparison with those markets therefore cannot be made from the supplied information. The measurable market reaction was bitcoin’s 4.79% weekly loss and Ethereum’s 7.28% weekly decline.

When investors reduce risk, they often sell the assets they consider most vulnerable first. In crypto, that generally means smaller coins and tokens rather than bitcoin, which is the market’s largest and most established asset. Selling pressure can therefore become heavier outside bitcoin even when the same event affects the entire sector.

The article shows this pattern clearly. Bitcoin fell 0.75% on Friday and 4.79% for the week. Ethereum fell 1.74% Friday and 7.28% from the previous Friday. Solana and XRP, whose latest recorded closes were from Thursday, dropped 6.66% and 6.75% that day. Ethereum also reached its lowest close in at least three months.

The Binance theft first damaged confidence, then falling technology shares deepened the risk reduction. The result was a broader retreat, with smaller coins falling further than bitcoin. The article does not identify a separate technical problem in Ethereum, Solana, or XRP. Their larger losses mainly reflected the market-wide shift away from risk.

Fast reopening of withdrawals matters because it would show that Binance can restore normal access after the theft. A delay could make customers and investors fear that assets are unavailable or that the exchange has deeper problems. The article identifies Binance’s withdrawal schedule as a key variable for the wider market.

TRM Labs said about US$2.4 billion remained in assets that issuers cannot freeze. If those coins move to markets and are sold, the supply available for sale could rise suddenly. That can push prices lower, especially while investors are already reducing risk. Binance says user funds are safe and that it will cover all losses from company funds and its SAFU reserve.

The article says bitcoin needs to hold above Friday’s low of US$76,418. A break of that level, or failure by Binance to reopen withdrawals on schedule, would extend the slide. A flood of stolen coins being sold would be the clearest new reason for further selling.

Cryptocurrency prices can respond to the same broad risk mood as technology shares. When investors become worried, they may reduce positions across assets and hold more cash. That creates selling pressure in both markets, even when there is no new crypto-specific shock. The article describes crypto as trading like a high-risk technology stock.

On Friday, the Nasdaq fell 2.86% and the S&P 500 fell 1.82%, their worst day since June according to the article. The stock sell-off followed Intel’s weak guidance and Amazon’s heavy AI spending plans. Bitcoin fell another 0.75% that day after its 4.30% Thursday decline caused by the Binance theft.

The timing shows two pressures working together. The Binance incident hurt crypto confidence on Thursday, while Wall Street’s decline reduced appetite for risk on Friday. US-listed crypto proxies fell even more sharply: IBIT lost 5.14%, and Coinbase shares fell 10.62%. Future crypto moves may therefore depend on both industry news and broader markets.

Bitcoin and other cryptocurrencies generally derive value from people’s willingness to hold, use, and trade them. Scarcity rules, network activity, expected usefulness, and confidence can support demand. Unlike a bond or bank deposit, bitcoin does not promise a regular interest payment. Its price therefore depends heavily on what buyers are willing to pay and how much risk they accept.

Higher interest rates can change that choice. When safer assets offer better returns, investors may demand a larger potential gain before holding an asset that pays no interest. Some may sell riskier holdings and move toward cash or interest-bearing investments. That can reduce demand for crypto, particularly when markets are already nervous.

The article ranks Federal Reserve uncertainty as one of three pressures, because the Fed has not ruled out another rate rise. It does not quantify the effect or explain cryptocurrency value in detail. Its clearest evidence is broader risk reduction: the Nasdaq fell 2.86%, while bitcoin and crypto-related shares also declined.