Bitcoin Tests Support as Binance Suffers Record $6.4B Hack (31 Oct)
- Bitcoin fell to $76,400 following a record $6.4 billion hack at Binance.
- Binance has reserved $6.34 billion to cover all customer losses from the theft.
- Stablecoin issuers have frozen $3 billion in stolen funds to prevent movement.
- Analysts from Cantor Fitzgerald and others view the hack as a specific security issue.
- Reddit shares plummeted over 30% amid concerns over Google's AI search features.
Binance suffered a $6.4 billion theft on Friday, 30 October 2026, which decrypt.co identified as the largest cryptocurrency hack in history. Reuters reported that cryptocurrency prices fell across the board after the exchange confirmed the security issue.
Bitcoin prices dropped below $77,000 following the breach. The price fell to $76,400 as the hack triggered $1.57 billion in liquidations on the same day. AlphaCheck and Yahoo Finance reported that the $6.3 billion hack rattled crypto markets and caused a decline in crypto-related stocks.
Bitcoin tests support levels amid volatility
Bitcoin is testing a key support level in the $75,000 to $77,000 range following the market rattle caused by the hack. The Motley Fool reported that the asset is reacting to this incident and a broader tech sector sell-off.
Bloomberg reported that the drop in Bitcoin prices is attributed to both the Binance hack and a wider sell-off in the stock market.
Binance reserves $6.34 billion to cover losses
Binance has reserved $6.34 billion of company funds to cover all losses from the hack. CEO Richard Teng confirmed in a video address that customer assets were not touched.
Stablecoin issuers and other firms have frozen approximately $3 billion of the stolen funds. This includes $1.5 billion frozen by Tether, $800 million by Circle, and $200 million by Ripple.
FBI and Secret Service launch investigation
The Secret Service and the FBI have launched an investigation into the hack. Firms including TRM and Chainalysis attributed the attack to the North Korean group TraderTraitor.
Cristiano Ventricelli of Moody’s Ratings said the incident highlights cybersecurity risks associated with hot wallets. He also warned about the dangers of concentration in large, centralized intermediaries.
Market analysts weigh in on crypto stocks
The Binance hack has caused crypto stocks to tumble. Tech stocks, including Intel and Amazon, led a market decline alongside the volatility in crypto markets.
According to analysts from Cantor Fitzgerald, TD Cowen and Compass Point, the hack represents a Binance security problem, not a danger to the wider crypto market. Despite the hack, some market analysis suggests that crypto markets are not experiencing extreme panic.
Ramsey El-Assal of Cantor Fitzgerald, Lance Vitanza of TD Cowen, and Ed Engel and Michael Donovan of Compass Point recommend buying crypto-linked stocks like Coinbase, Robinhood, and Strategy during the current price weakness.
Reddit shares dropped 30.44% to $90.15 on Friday. CEO Steve Huffman cautioned that Google's AI-powered search tools are diminishing referral traffic and might affect the user base.
Changpeng Zhao requests end to Elon Musk mockery
Changpeng Zhao publicly requested that Elon Musk stop mocking the exchange regarding the hack.
Zhao reminded Musk that Binance holds SpaceX shares valued at over $1 billion.
Frequently Asked Questions
Add NewsPulse Time as a preferred source on Google