Why bitcoin held up better after the record Binance hack — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Binance said on Thursday that roughly $6.3 billion was affected in the biggest hack in crypto history, which TRM Labs linked to North Korea.
- Bitcoin traded at $77,065 around 1:34 p.m. ET Friday, down about 4% after the exploit, versus an average 8.3% decline during the first 24 hours after past exchange exploits.
- Sam Callahan said investors recognized that the breach involved centralized Binance rather than the Bitcoin network, explaining the comparatively muted price reaction.
- Binance began recovering affected assets, while Tether, Circle and other crypto firms froze roughly $3 billion in stolen funds; GSR’s Spencer Hallarn said the rapid response helped restore confidence and prevent potential panic.
- Compass Point analyst Ed Engel said Binance has enough liquidity to cover the $6.3 billion hole and remain solvent while reimbursing users, citing Bybit’s bridge loan after its $1.5 billion hack as evidence of financing options.
- Spencer Hallarn noted that bitcoin traded largely in lockstep with other risk assets during a technology-stock rotation, while the iShares A.I. Innovation and Tech Active ETF fell more than 8%.
- David Lawant said the fact that only 6% of bitcoin is held in ETFs suggests many coins remain with long-term holders who are less likely to sell during short-term headwinds than holders of other risk-on assets.
Why it matters: For Binance users exposed to $6.3 billion, the material issue is exchange-level reimbursement: roughly $3 billion in stolen funds was frozen, and Binance has a $1.2 billion loss-offsetting fund. Bitcoin’s 4% fall, versus the 8.3% average after past exploits, reflects that the breach was not treated as a failure of the underlying network.
Ask SkimNews
