Bitcoin Sinks Below $80,000 as Suspected $5.8 Billion Binance Hack Rattles Markets
Bitcoin fell below the $80,000 mark, sliding into the $77,000 range as allegations of a major security breach at Binance, the world's largest cryptocurrency exchange, heightened market anxiety. However, neither the suspected hack nor the extent of any losses has been confirmed.As of 9:20 a.m. on Oct
Bitcoin's price plummeted beneath the $80,000 threshold, descending to the $77,000 range, as reports of a suspected $5.8 billion security breach at Binance sent shockwaves through the cryptocurrency market. As of 9:20 a.m. on October 30, Bitcoin's value was $77,241, marking a 4.84% decline over the past 24 hours. Ethereum and XRP also experienced declines, with both assets falling 5.67% and 7.14%, respectively. Binance's native token, BNB, plunged 9% to $690.
The overall value of the cryptocurrency market dipped 4.28% to $2.6 trillion, while liquidations in the crypto futures market reached $1.15 billion, contributing to heightened selling pressure. Concerns about the safety of customer funds and the true extent of any losses remained unverified, despite suspicions surrounding Binance's hot wallets, which are internet-connected wallets often targeted by hackers.
Blockchain analytics platform Arkham Intelligence identified roughly $5.7 billion in assets held in wallets potentially linked to the incident, including $1.5 billion in Bitcoin and $900 million in Ethereum. However, the assets in these wallets may not equate to confirmed theft. Binance CEO Changpeng Zhao acknowledged a potential hack but reassured users that their funds were secure.
He suggested losses could surpass $1 billion while confident that compensation through the Secure Asset Fund for Users (SAFU) could be provided.
In response to the breach, Binance temporarily halted deposits and withdrawals to conduct security checks and cooperate with law enforcement. Major stablecoin issuers, including Tether and Circle, froze substantial amounts of their respective tokens amid the investigation. If the upper estimate of $5.8 billion stolen holds true, the incident could surpass the Bybit hack from February 2025 as the largest cryptocurrency heist in history. The CoinMarketCap Fear and Greed Index fell to 37, indicating fear among market participants.
Macroeconomic factors, such as the U.S. Federal Reserve's decision to maintain interest rates at 3.75% to 4.00% and the possibility of further hikes, also contributed to market unease. Meanwhile, approximately $11 billion in cryptocurrency options were nearing expiration, raising concerns about potential short-term volatility. Despite the turmoil, the U.S. government reiterated its commitment to leveraging digital asset technology to bolster the dollar's global standing.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
