Bitcoin Crashes 7.4 Percent to USD77,437 as Binance Hack Rocks Market
The slide erased roughly $265 billion in value from the wider crypto market, pulling its total capitalization down to $2.6 trillion.
The downturn came on the heels of a powerful third-quarter rebound, when Bitcoin soared 42.5% after posting losses of 22.1% in the first quarter and 13.9% in the second. Its summer climb began with a 7.2% gain to $62,884 in July, followed by a 25.3% jump to $78,816 in August and a 6.1% rise to a peak of $83,597 in September.
Mete Ali Baskaya, a blockchain and crypto asset strategist, told a Turkish news agency that high US interest rates, climbing bond yields and sell-offs in the technology sector had already pushed investors away from risk assets before the breach.
The Binance attack compromised an estimated $6.3 billion in assets, adding to the selling pressure. The exchange said it set aside company funds to cover user losses and began restoring withdrawals in stages on Sunday. Once withdrawals resumed, the platform logged a net outflow of about $3.64 billion.
The breach hit centralized exchange infrastructure and did not compromise the Bitcoin blockchain network itself, but its scale still weighed heavily on market sentiment.
“The US Federal Reserve’s monetary policy, bond yields, institutional fund flows, and the extent to which investor confidence recovers will determine Bitcoin’s direction in November,” Baskaya said.
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