Bitcoin holds $78,000 as Binance resumes withdrawals after hack (2 Nov)

Binance replenishes 95% of $6.3 billion stolen in hack

Binance has replenished approximately 95% of the assets affected by a $6.3 billion security breach, according to Altcoin Buzz and TradingView. The FBI formally attributed this theft, which occurred on or about October 29, to the North Korean hacking group known as TraderTraitor.

Binance began restoring withdrawals in phases on Sunday at 1 a.m. ET.

CEO Richard Teng said, "Binance will absorb the financial impact of the stolen funds, not our users".

Binance reports $3.64 billion in net outflows after reopening

DefiLlama recorded over $3.5 billion in net outflows from Binance on Sunday as the exchange began reopening services.

CoinDesk reported that over $6 billion left Binance-associated wallets in the 24 hours after withdrawals reopened.

Reuters reported that Binance raised $6 billion from its corporate treasury, insurance fund, and SAFU emergency fund to cover losses, while Circle froze over $1.1 billion in USDC. Binance co-CEO Yi He stated on X on Monday that the exchange's top priority is ensuring a secure environment before resuming full operations. DefiLlama placed Binance's total assets at approximately $127.6 billion on Monday.

Spot Bitcoin ETFs record $643 million in Friday outflows

Institutional ETF outflows reached $643 million on October 30, 2026, according to finance.yahoo.com, while coindesk.com reported $643 million, altcoinbuzz.io reported $643.3 million, and decrypt.co reported $643.2 million. This movement erased four days of consecutive inflows.

Data from October 28 showed a net inflow of $137.33 million, with BlackRock's iShares Bitcoin Trust (IBIT) contributing $136.01 million to that total. These ETFs held total net assets of $104.88 billion as of that date.

Since August 1, these funds attracted $6.4 billion in net inflows, according to Coinbase Institutional. BlackRock's IBIT captured $6 billion of that amount, while all other U.S. spot Bitcoin funds combined garnered $500 million. Corporate treasuries added $1.5 billion during the same period.

The Friday sell-off resulted in approximately $516 million in net outflows for the month of October. This daily loss was the largest recorded since June.

Crypto market valuation reaches $2.68 trillion despite volatility

The global cryptocurrency market is valued at roughly $2.68 trillion, with Bitcoin representing approximately 58% of that total. Despite this valuation, market sentiment has shifted, with the Fear and Greed index falling to 30 from an average of 56 following the recent Binance security breach.

Retail sentiment on Stocktwits remains in the "extremely bullish" zone, with chatter levels holding steady at a "normal" pace.

Trading activity surged, with volume rising 37% for Bitcoin and 83% for Ethereum, though open interest for both remained flat. Crypto futures volume increased 56% over 24 hours to reach $111.8 billion, while liquidations rose 77% to $140.2 million. Open interest in futures stayed at $137.1 billion.

Deribit options activity for Bitcoin centered on puts with a $58,000 strike price expiring November 27. Ethereum options saw the $2,650 call expiring November 6 leading the activity. CoinMarketCap’s altcoin season index dropped to 46/100, down from a high of 60/100 the previous week.

Altcoins and AI tokens decline amid broader market shifts

Binance restored fiat withdrawals on Monday for the U.S. dollar, UAE dirham, Vietnamese dong, Philippine peso, and Indonesian rupiah. This follows a period where the U.S. Secret Service worked with partners to freeze a significant portion of stolen cryptocurrency within minutes of the attack.

Chainalysis reported that hackers moved over $500 million on the Tron network. The funds were laundered through cross-chain services like Chainflip, Relay, THORChain, and NEAR to wallets on Ethereum, Bitcoin, and Solana.

The Cronos network reversed about $111.2 million in transactions to protect 92% of funds affected by an exploit of the Tectonic lending protocol.

Thorchain (RUNE) fell 6.4% after regulators, including the FBI and IRS Criminal Investigation, requested node operators block addresses associated with the Binance hackers. Binance's BNB token saw open interest fall 5.31% alongside a 1.12% price drop as traders closed positions.

AI-linked tokens declined on Monday, with grass (GRASS) down 4.5%, near (NEAR) down 4.0%, and kite (KITE) down 3.3%. NEAR also fell 5.93% with a 4.84% drop in futures open interest and $3.23 million in liquidations.

The memecoin Official Trump (TRUMP) fell 4.2% ahead of the U.S. midterm elections. On Monday, Monero (XMR) rose 1.7%, zcash (ZEC) rose 1.4%, and tron (TRX) rose 1.0%.

As of Monday, Ethereum was priced at $2,268, BNB at $709, and XRP at $1.25. Solana (SOL) traded at $94 and closed at a 30-day low on November 1, while Dogecoin was priced at $0.075.

Analysts look toward U.S. midterm elections on November 3

Bitcoin recovered toward $78,000 on November 1 following a market selloff triggered by the $6.3 billion security breach at Binance.

Bitcoin regained its 50-week moving average on September 20, following 44 consecutive weeks of closing below that level. Thorn stated on X, "Great to see BTC's resilience and ability to keep the current technical market structure intact".

Nasdaq-100 futures rose 0.8%, while Brent crude dropped 4% to approximately $109 following comments from Secretary of State Marco Rubio regarding President Donald Trump's desire for a peaceful resolution to the Iran war. Analyst Michaël Van de Poppe stated that the U.S. midterm elections are already priced into the market.

The Digital Asset Market Clarity Act failed to advance following a Senate procedural vote on September 15.

The U.S. midterm elections are scheduled for November 3.