Binance Hack Fallout Persists: Bitcoin Dips to 76,000 USD Range Ahead of U.S. Elections
Bitcoin (BTC) has retreated to the 76,000 USD level as the U.S. midterm elections draw near.
Market analysts attribute this decline to subdued buying pressure in the wake of the Binance hack, coupled with heightened caution surrounding the upcoming elections.
As of 10:00 a.m. (KST) on Tuesday, Bitcoin’s price in South Korea, based on Bithumb data, stood at 103.699 million KRW (approximately 77,450 USD), marking a 1.2% decrease from the same time the previous day.
Concurrently, CoinMarketCap reported that the global Bitcoin price had fallen by 1.39% from the previous day, settling at 76,938 USD.
Despite a sharp drop in global oil prices following progress in U.S.-Iran negotiations, the recent Binance hack continues to cast a shadow over investor sentiment. On October 29, Binance, the world’s largest cryptocurrency exchange, fell victim to a hack resulting in the theft of 6.3 billion USD worth of digital assets.
Wintermute observed that post-hack, most low-price buying has been concentrated in leveraged futures, with insufficient new capital flowing into the spot market to sustain a rebound, identifying weak spot demand as a key factor in the price decline.
Some analysts predict that the Binance hack’s impact may linger. They draw parallels to last February’s Bybit exchange hack, where the theft of 1.5 billion USD in digital assets led to a more significant price drop a week after the incident rather than immediately following it.
On February 21 last year, when the Bybit hack occurred, Bitcoin was trading around 99,000 USD. However, by February 28, it had fallen below the 80,000 USD mark.
Binance Hackers Converting Stolen Solana to Bitcoin
Reports suggest that the hackers behind the 6.3 billion USD Binance theft are continuing their money laundering efforts by exchanging stolen Solana (SOL) for Bitcoin (BTC).
On Monday, blockchain analytics firm Lookonchain reported that the hackers had moved 486,970 Solana tokens and were exchanging them for Bitcoin through relay protocols. These relays are cross-chain mechanisms enabling exchanges between assets on different blockchains. The transferred Solana is valued at approximately 46.4 million USD.
Earlier, blockchain analysis firm Chainalysis reported on November 1 that the hackers had largely emptied the Tron blockchain-based wallet used for money laundering, suggesting a transfer to other wallets or blockchain networks.
Another Exchange Security Breach: Brazil’s Largest Crypto Platform Hit
Mercado Bitcoin, Brazil’s leading cryptocurrency exchange, has confirmed it was also targeted by hackers.
On Monday, CoinDesk and other media outlets reported that Mercado Bitcoin had suspended deposits and withdrawals after detecting a security breach. The exchange assured that customer assets remained unaffected.
While customer funds were reportedly secure, analysis indicates that approximately 49 million USD in digital assets were withdrawn from the exchange’s own wallet.
Dixon Wu, an engineer at blockchain security firm Certik, detailed that the attackers systematically targeted eight blockchain networks, including Base, Optimism, and Arbitrum, over a four-hour period. The assault then expanded to the exchange’s hot wallet, with small Ethereum (ETH) transfers observed from 27,160 wallets.
Strategy Adds 811 Bitcoins to Holdings
Strategy (formerly MicroStrategy), the world’s largest corporate Bitcoin holder, acquired an additional 811 Bitcoins last week.
On Monday, Strategy announced it had invested 65.5 million USD to purchase 811 Bitcoins at an average price of 80,846 USD per coin. The company also allocated 208.2 million USD to repurchase its preferred stock, STRC.
These funds were raised through a common stock offering. Strategy disclosed that it had sold approximately 1.18 million shares of its common stock, generating 164 million USD. Of this amount, 65.5 million USD was used for Bitcoin purchases, with the remainder added to the company’s cash reserves.