Binance hack points to stronger bitcoin market resilience: Fitch - Anadolu Ajansı
Bitcoin fell only 6% after a $6.3 billion hack on Binance, suggesting the cryptocurrency market has become more resilient to industry shocks, according to Fitch Ratings.
The attack began October 29, with digital assets stolen across multiple blockchains in what could be the largest cryptocurrency theft to date. The stolen assets reportedly included around 18,270 bitcoin, worth approximately $1.5 billion at the time. Binance temporarily halted trading and withdrawals before beginning to restore withdrawal services November 1.
Limited Impact
Bitcoin fell approximately 6% in the 10 hours following initial reports of the attack, though broader market weakness and leveraged positioning also contributed to the decline. Daily bitcoin trading volume rose 67% to about $40.9 billion, compared with a daily average of $27 billion over the preceding 30 days.
We believe the lower level of disruption is probably due to crypto trading market structures having become deeper and more diversified.
Market Maturity
Fitch noted the price movement was relatively contained compared with bitcoin's worst daily decline of 35% during the March 2020 coronavirus crisis, a 14% drop following the collapse of FTX in 2022, and a 21% fall during the Bitstamp hack in 2015. The agency said the incident alone does not change its analytical view of bitcoin-backed securities, but could strengthen evidence that bitcoin market liquidity and infrastructure have become more resilient as the asset class matures.
Related
