Can Bitcoin Withstand Binance’s Historic Security Crisis?

Bitcoin remained above US$77,000 as Binance gradually restored withdrawals after a record-breaking security breach. At 11:02 UTC on Monday, Bitcoin was trading at US$77,926, according to CoinGecko, about 2% above the post-incident low calculated by Unchained.

Ether also held relatively steady at US$2,285.83. The restrained response from both leading cryptocurrencies contrasted with the sharp anxiety seen late the previous week, when the breach triggered heavy selling and widespread concern about the exchange’s financial resilience.

Bitcoin Recovers Despite a Difficult Weekend

The market’s lowest point came on Friday afternoon, Oct. 30. Bitcoin’s BTC-USD price on Coinbase fell to US$76,141 at 18:50 UTC, based on exchange data. It later recovered into the upper US$77,000 range, suggesting that buyers were prepared to return even while details of the Binance incident continued to dominate crypto coverage.

That rebound carried additional significance because the exchange attack had created pressure across the wider digital-asset market. Reports indicated that Binance had been affected by approximately US$6.3 billion in stolen assets, making the event one of the largest breaches in cryptocurrency history.

Withdrawal Activity Shows Caution Rather Than Panic

Binance began restoring customer withdrawals in stages at 06:00 UTC on Sunday, Nov. 1. The decision followed a temporary suspension intended to give the company time to investigate the breach, strengthen its systems and complete further security checks.

The first nine and a half hours produced a substantial outflow, but the activity did not develop into an uncontrolled rush:

• Customers withdrew US$4.649 billion between 06:00 and 15:30 UTC.
• Users deposited approximately US$1.01 billion during the same period.
• The resulting net outflow was about US$3.64 billion.
• Binance said the net figure represented roughly 2.1% of its US$171 billion in customer assets, based on its Oct. 28 proof-of-reserves report.

Binance said withdrawals had begun to slow and were stabilizing as expected. That pattern mattered because it indicated that customers were testing the system and reducing exposure, but not necessarily abandoning the exchange all at once. The company also said that withdrawals for more than two dozen major cryptocurrencies had resumed, with additional services expected to return after phased reviews.

ETF Selling Did Not Push Bitcoin Through Its Recent Low

Bitcoin also had to absorb considerable pressure from United States-listed spot ETFs. SoSoValue reported US$643.3 million in net outflows on Friday, yet Bitcoin managed to avoid a deeper slide over the weekend.

BlackRock’s IBIT led the withdrawals with approximately US$233.7 million, while Fidelity’s FBTC recorded about US$201.0 million in redemptions. The timing made the figures especially notable: Friday was the first United States trading session after the Binance incident began following Thursday’s market close.

American investors were therefore reacting to the breach almost immediately. Even so, the ETF outflows did not force Bitcoin back toward the Friday trough. The ability to hold above that level pointed to continuing demand from traders who viewed the decline as an opportunity rather than the start of a broader collapse.

North Korean Links Add to the Security Concerns

Blockchain intelligence companies TRM Labs and Chainalysis estimated the losses at more than US$6.3 billion. Both firms linked the operation to TraderTraitor, a hacking group associated with North Korea.

Binance attempted to limit the consequences for its customers by promising to cover the losses. The exchange said it would use its SAFU emergency fund and corporate resources, rather than transferring the cost to account holders. It also reported that about US$3 billion in affected assets had been frozen across blockchain networks.

The commitment to make users whole helped support confidence during the withdrawal restart. Although the outflow was large in dollar terms, its stabilization gave the market an early indication that the exchange could handle the immediate demand for liquidity.

Geopolitical Risk Could Add Fresh Volatility

Crypto traders are also entering a week shaped by developments outside the digital-asset sector. The approaching United States midterm elections coincide with an unresolved question over Washington’s response to Iran.

Israeli Prime Minister Benjamin Netanyahu reportedly urged President Donald Trump to launch an attack against Iran immediately after the vote. Trump has appeared more willing to continue diplomatic efforts, telling reporters on Saturday that discussions with Tehran were progressing well and that he was not in a hurry.

Secretary of State Marco Rubio similarly said that no final decision had been made. For cryptocurrency investors, that leaves two major sources of uncertainty operating at the same time: the aftershocks from Binance’s record security failure and the possibility of a sudden geopolitical escalation.