Binance Hack Raises BTC and ETH Selling Risks
A reported Binance hot-wallet hack on 30 October triggered market volatility, with estimates of outflows ranging from $5.64 billion to $6.26 billion across nine blockchains. Binance paused some services and worked with security firms, stablecoin issuers and law enforcement to trace and freeze funds. The exchange said customer assets were safe and it would cover the losses.
Later reports put the attacker’s remaining holdings at about $2.9 billion to $3.3 billion, though estimates differ and are not fully reconciled. Potential selling risks include 18,270 BTC, valued at around $1.44 billion, and 467,000 ETH, worth about $1.06 billion, as well as roughly $180 million in altcoins. Some USDC, USDT and WLFI were reportedly frozen; the attacker may have swapped other assets for tokens that are harder to freeze. The attack route remains under investigation, with EIP-7702 authorisation requests cited but no confirmed cause.
The news coincided with sharp price declines: BTC briefly fell below $77,000, ETH to about $2,200 and BNB to around $693. CoinGlass reported more than $1.55 billion in 24-hour liquidations, mostly from long positions. The scale and timing of any BTC or ETH sales remain uncertain, but continued swaps and questions over Binance’s security response could keep volatility elevated.
Bearish
The immediate price impact is bearish for the cryptocurrencies identified as potential sale targets, particularly BTC and ETH. Reports of large attacker-held balances create a risk that coins could be sold or swapped, adding supply and encouraging traders to reduce exposure. The sharp price declines and heavy liquidations reported after the news show how security concerns can amplify short-term selling, especially when leveraged long positions are vulnerable. BNB also fell amid the broader reaction.
The downside is not certain to persist. Some funds have reportedly been frozen, the assets are traceable, and the attacker’s sales may be limited by market liquidity and the risk of attracting attention. Binance’s commitment to cover losses and its cooperation with investigators may help contain concerns about customer solvency. Over the longer term, the market’s response will depend on confirmed losses, the amount and pace of any sales, and whether the investigation identifies a broader security weakness. Until those questions are resolved, uncertainty is likely to weigh on sentiment and keep volatility elevated.