Bitcoin Rebounds to $77,500 as Binance Hack Fallout Eases
Bitcoin rebounded to about $77,569 and Ethereum returned to around $2,250 on 31 October, after both hit lows during the Binance hack fallout. Solana and XRP also rose. Crypto market liquidations over 24 hours fell to $573 million, with long positions accounting for about 72%; the Fear and Greed Index remained at 30, in the fear zone.
Binance founder Changpeng Zhao said the exchange would cover user losses, while blockchain partners including Tether, Circle and Arbitrum-related security teams had frozen about $3 billion in assets. The exchange had yet to announce when deposits and withdrawals would resume.
Despite the rebound, technical indicators for Bitcoin and Ethereum remained weak: both traded below their 20-day and 50-day averages, with bearish MACD readings and prices near the lower Bollinger Band. US equities also fell sharply amid concerns about AI spending, adding pressure to risk assets. Traders are watching Binance’s service updates, recovery of stolen funds and broader risk sentiment.
Bearish
The immediate market signal is bearish, although prices staged a modest recovery. The Binance hack has raised concerns about exchange security and operational disruption, while the Fear and Greed Index remains at 30. Bitcoin and Ethereum are below their 20-day and 50-day moving averages, with bearish MACD readings and prices near the lower Bollinger Band. These conditions can encourage cautious positioning and amplify volatility, especially if deposits and withdrawals remain unavailable or stolen assets are not recovered.
The fall in liquidations to $573 million suggests forced selling pressure has eased from the previous session, and the rebound in major tokens indicates the market has so far contained the shock. Binance’s commitment to cover user losses and the reported freezing of about $3 billion in assets may also limit direct contagion. This contrasts with past exchange failures such as FTX, where uncertainty around customer funds and solvency contributed to a much broader loss of confidence. The reported Binance incident is described as an exchange-level loss, with user assets unaffected, which reduces—but does not remove—the risk of a similar confidence shock.
In the short term, traders are likely to focus on Binance’s service updates, recovery efforts and Bitcoin’s nearby support levels. A break below recent lows could renew liquidations; a sustained recovery above nearby technical resistance could ease pressure. Longer term, the event may reinforce demand for stronger custody and risk controls. The overall outlook remains vulnerable until operational uncertainty and broader risk-off conditions, including weakness in US equities, subside.