Bitcoin Sinks Below $80,000 as Suspected $5.8 Billion Binance Hack Rattles Markets - Businesskorea

Bitcoin fell below the $80,000 mark, sliding into the $77,000 range as allegations of a major security breach at Binance heightened market anxiety. As of 9:20 a.m. on Oct. 30, Bitcoin was trading at $77,241, down 4.84% over the previous 24 hours. Ethereum fell 5.67% to $2,290, while XRP and Solana declined 7.14% and 7.49%, respectively. BNB, Binance's native token, plunged 9% to $690.

The total cryptocurrency market capitalization dropped 4.28% over the same period to $2.6 trillion, while liquidations in the crypto futures market reached $1.15 billion, adding to selling pressure. One of the major factors cited in the selloff was suspicious activity involving Binance's hot wallets, which are cryptocurrency wallets connected to the internet.

Binance Investigation Underway

Conor Grogan, a senior director at Coinbase, estimated that as much as $5.8 billion, or approximately 8 trillion won, in assets may have been transferred out of Binance's hot wallets. Blockchain analytics platform Arkham Intelligence also identified approximately $5.7 billion in assets held in wallets suspected of being linked to the incident, including $1.5 billion in Bitcoin and $900 million in Ethereum. However, the assets held in those wallets do not necessarily represent confirmed theft.

Wallet sweeping is a process through which exchanges automatically consolidate assets from individual deposit addresses into hot or cold wallets for more efficient management. Binance launched an investigation following the reports. Co-founder Changpeng Zhao acknowledged the possibility of a hack but stressed that user funds were safe.

Market Response and Concerns

Binance co-CEO He Yi announced a temporary suspension of deposits and withdrawals to facilitate security checks, asset freezes and cooperation with law enforcement. The exchange said it would release further findings through its official channels once verified information became available. Major stablecoin issuers also moved to prevent the further transfer of potentially compromised funds.

Tether froze more than 1.567 billion USDT, while Circle froze over 800 million USDC. Ripple and World Liberty Financial reportedly froze approximately $200 million and $27 million worth of stablecoins, respectively, in cooperation with the investigation. If the upper estimate of $5.8 billion is confirmed as the actual amount stolen, the incident could become the largest cryptocurrency hack on record, far exceeding the approximately $1.5 billion stolen from cryptocurrency exchange Bybit in February 2025.

Market observers warned that the incident could further undermine confidence in the cryptocurrency industry. Bloomberg Intelligence analyst James Seyffart described a potential security breach of this magnitude at the world's largest exchange as a major setback, raising concerns about its impact on public trust. The CoinMarketCap Fear and Greed Index fell to 37, placing market sentiment in the "fear" category.

Broader Market Pressures

Beyond exchange security concerns, macroeconomic conditions have also weighed on cryptocurrency prices. The U.S. Federal Reserve's decision on Oct. 28 to hold its benchmark interest rate at 3.75% to 4.00%, while leaving open the possibility of further increases, added to risk-averse sentiment. Caution surrounding earnings announcements from major U.S. technology companies also pressured risk assets.

Meanwhile, approximately $11 billion in cryptocurrency options were approaching expiration, raising concerns about further short-term volatility. Uncertainty surrounding potential regulatory changes following the upcoming U.S. midterm elections added to market unease. Despite the market turmoil, the U.S. government reaffirmed its commitment to using digital asset technology to strengthen the dollar's global standing.

Speaking at Ripple's Swell 2026 event in New York on Oct. 27, Treasury Secretary Scott Bessent said that winning the competition in digital asset technology would reinforce the dollar's international position. He also outlined plans to expand demand for U.S. Treasuries through stablecoins and advance regulatory reforms in cooperation with the SEC and CFTC. Binance continues to investigate the suspected breach while warning users to exercise caution when receiving links or messages through unofficial channels.