Crypto Market Tests Its Nerve After Binance Security Crisis

Bitcoin showed resilience after Binance began restoring customer withdrawals following a record-breaking security breach. The cryptocurrency traded at $77,926 at 11:02 UTC, according to CoinGecko, about 2% above the post-incident low calculated by Unchained.

Ether was changing hands at $2,285.83, while both major digital assets appeared more stable than they had at the end of the previous week. Bitcoin had reached a weekend low of $76,141 at 18:50 UTC on Friday, Oct. 30, based on Coinbase exchange data.

Binance Restores Access in Phases

The market’s modest rebound came as Binance started reopening withdrawals at 06:00 UTC on Sunday, Nov. 1. The staged restart followed a temporary freeze imposed after hackers removed billions of dollars in digital assets from the exchange’s wallets.

Initial activity was substantial, but the flow did not resemble a disorderly rush for the exits. During the first nine and a half hours, Binance reported the following figures:

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

Binance said withdrawal volumes eased after the initial burst and were settling at expected levels. That trend offered some reassurance that the exchange could handle the demand without a broader liquidity crisis.

Heavy ETF Selling Did Not Push Bitcoin Lower

Bitcoin also held up despite significant selling pressure from U.S. spot exchange-traded funds. SoSoValue data showed combined net outflows of $643.3 million on Friday, yet the cryptocurrency remained above its intraday floor and later recovered into the upper $77,000 range.

BlackRock’s IBIT recorded the largest reported withdrawal at $233.7 million. Fidelity’s FBTC followed with an outflow of approximately $201 million.

Friday was the first U.S. market session after the Binance incident began following Thursday’s close. Investors therefore had to respond to the breach almost immediately, making Bitcoin’s ability to withstand the redemptions a notable sign that buyers remained active.

Losses Exceed $6.3 Billion

The breach ranks among the most serious attacks ever recorded in the cryptocurrency industry. Blockchain intelligence companies TRM Labs and Chainalysis have estimated the stolen amount at more than $6.3 billion, while both firms have connected the operation to TraderTraitor, a North Korean-linked hacking group.

Binance has said customers will not be left responsible for the losses. The exchange committed to using its SAFU reserve and corporate funds to absorb the financial damage. It also reported that around 95% of the stolen assets had been covered, helping explain why withdrawal activity appeared to normalize rather than trigger a sustained run.

Political Risk Adds to Market Uncertainty

Digital-asset traders are also watching developments beyond the exchange crisis. The approaching Tuesday U.S. midterm elections have revived questions about Washington’s next steps regarding Iran.

Axios reported that Israeli Prime Minister Benjamin Netanyahu had pressed President Donald Trump to take military action against Iran soon after the vote. Trump has signalled a less urgent approach, saying on Saturday that discussions with Tehran were progressing well and that he was not in a rush.

Secretary of State Marco Rubio likewise indicated that no final decision had been reached, according to Iran International. Bitcoin is therefore entering the new trading week with two major sources of uncertainty: the aftermath of the largest exchange breach in the sector’s history and unresolved geopolitical tensions.