Bitcoin price found stability above $77,000 after a marketwide sell-off that was instigated by Thursday’s $6.3 billion hack of Binance, which momentarily pushed the cryptocurrency down to approximately $76,000, marking its lowest point since August 21. The downturn occurred soon after bitcoin neared $82,000 earlier Thursday, propelled by robust U.S. gross domestic product data. According to data, bitcoin initially declined by over $2,500 shortly after the news of the hack emerged Thursday afternoon, finding temporary support above $78,200. A brief recovery was swiftly overshadowed by persistent selling pressure, as investors, rattled by the magnitude of the attack, pushed the token down to $76,320.
Bitcoin experienced a surge from $76,400 to nearly $79,000 between midnight and 10 a.m., subsequently retreating below $76,500. A second attempt to regain ground fell short of the $78,000 mark. By 1:00 p.m., the leading cryptocurrency by market cap was trading at $77,255, reflecting a daily decline of 4.7%. Friday’s losses positioned bitcoin on the brink of concluding October with a decline exceeding 7%, concurrently expanding the cryptocurrency’s year-to-date losses to over 11%. The losses also pulled bitcoin’s market capitalisation down to $1.55 trillion, which subsequently contributed to a decline in the broader crypto economy’s market cap to around $2.7 trillion. Binance disclosed that hackers had appropriated $6.3 billion in digital assets, while persistent price volatility resulted in bitcoin liquidations exceeding $500 million. As of this writing, the total stands at $556 million over the past 24 hours, according to source.
Long positions suffered the majority of the losses, representing 83%, or approximately $464 million, of the extinguished bets, whereas short liquidations amounted to nearly $92 million. Across the broader crypto market, liquidations reached $1.66 billion, primarily driven by $1.45 billion in long position wipeouts. Meanwhile, analysts caution that the breach of a significant cryptocurrency exchange highlights the broader security vulnerabilities within the industry. As AI tools continue to assist attackers, the persistent breaches observed across almost all significant exchanges indicate that security protocols are still not adequately robust. Ryan Kirkley contended that Binance’s dependence on external support to address the attack highlights more profound systemic challenges. “We’re talking about the world’s largest crypto exchange relying on emergency freezes and reimbursement promises to contain a multibillion-dollar incident,” Kirkley said.
“That’s a serious problem for an industry asking institutions to trust it with substantially more capital. For me, the takeaway is simple. Institutions need more than assurances that their money is safe. They need verifiable ownership, proper controls, and reliable access to their assets, particularly when markets are under pressure.” Consequently, while crypto leaders pour resources into lobbying Washington for regulatory favors, Kirkley warned that the industry’s most existential threats aren’t coming from lawmakers; they are coming from rapid advances in cybercrime and AI. “The CLARITY Act and the election outcome will matter for regulatory certainty, but institutions need a financial system they can rely on regardless of who’s in Washington,” he added. “Political influence can help shape legislation. It can’t compensate for weak custody, unreliable access, or poor operational controls.”
