Can Bitcoin Absorb Binance’s Record-Breaking Security Shock?

Bitcoin held near $77,926 at 11:02 UTC on Monday, remaining roughly 2% above the post-incident low calculated by Unchained from CoinGecko data. Ether was changing hands at $2,285.83, suggesting that the two largest digital assets had found greater stability after the sharp volatility of the previous week.

The market’s lowest point came on Friday, Oct. 30, when Coinbase’s BTC-USD market fell to $76,141 at 18:50 UTC. A return to the upper-$77,000 range indicated that buyers were still active, even while the Binance breach remained the dominant issue for cryptocurrency traders.

Withdrawals Resume Without a Full-Scale Panic

Binance began restoring customer withdrawals in stages at 06:00 UTC on Sunday, Nov. 1. The move ended the temporary restrictions introduced after the exchange detected the security incident, while phased processing allowed additional checks to take place.

Activity during the first nine and a half hours showed substantial demand for transfers, but not the uncontrolled rush many investors had feared:

• Customers withdrew approximately $4.649 billion between 06:00 and 15:30 UTC.
• Deposits reached about $1.01 billion over the same period.
• The resulting net outflow was close to $3.64 billion.
• Binance said the net figure represented about 2.1% of the $171 billion in customer assets listed in its Oct. 28 proof-of-reserves report.

The pace of withdrawals eased later in the morning and began to settle, according to the exchange. Binance described market conditions as stable, a message designed to reassure customers that the platform could manage the unusually heavy flow of funds.

Bitcoin Endures Heavy ETF Selling

The price recovery was notable because it came during a difficult session for regulated investment products. U.S. spot bitcoin exchange-traded funds recorded $643.3 million in net outflows on Friday, according to SoSoValue, yet bitcoin did not revisit its lowest level from the sell-off.

BlackRock’s IBIT led the redemptions with approximately $233.7 million, while Fidelity’s FBTC registered around $201.0 million in outflows. Together, the two funds accounted for a significant portion of the day’s withdrawals.

Friday was also the first U.S. market session after the breach began following Thursday’s close. American investors therefore had their first opportunity to respond to the incident through ETF trading, making the resilience of the bitcoin price especially noteworthy. The ability to hold above the intraday floor pointed to continuing demand despite institutional selling pressure.

The Largest Theft in the Industry’s History

The Binance incident has been estimated at more than $6.3 billion by blockchain intelligence firms TRM Labs and Chainalysis. Both firms linked the activity to TraderTraitor, a North Korean hacking group associated with major cryptocurrency thefts.

Investigators said the attackers moved assets across multiple blockchain networks, with a large portion transferred in a short period. Reports indicated that billions of dollars were frozen, although some assets remained outside the reach of issuers and recovery efforts.

Binance said customer accounts would not bear the loss. The exchange committed to using its SAFU emergency fund and corporate capital to cover the stolen assets, helping reduce the risk that users would face permanent losses or that the withdrawal freeze would trigger a broader run.

Political Risk Adds Another Layer of Uncertainty

Cryptocurrency traders are also watching developments involving Iran as U.S. midterm elections approach on Tuesday. The geopolitical question adds a second source of uncertainty to a market already dealing with the consequences of a record exchange compromise.

Axios reported that Israeli Prime Minister Benjamin Netanyahu had encouraged President Donald Trump to authorize military action against Iran after the election. Trump appeared less urgent, telling reporters on Saturday that discussions with Tehran were progressing and that he was not in a hurry.

Secretary of State Marco Rubio supported the more cautious tone, saying that no final decision had been reached, according to Iran International. Bitcoin therefore begins the new week balancing two separate risks: confidence in exchange security and the possibility of a sudden change in the Middle East.