Binance's Biggest Hack Yet: Why Did Bitcoin Fall Only 3–5%? Is ETF responsible?

[Compromise me]

Maybe it could be as a result of that but what is clearly seen in the pattern of the market to behave in this manner, even after this big hack in the market is the fact that the market is also becoming more accustomed to happenings like this. FUD has always been one of the major cause of crash in the market in the aftermath of hack on big exchanges like this, but with more people getting to understand how the market behaves and also seeing this as a temporary circumstance which can also be controlled, FUD is now getting less effect in the market than before. For now, we will keep observing but I don’t think the market will fall significantly as a result of this.

Yes, you are right because in the short history of crypto existence, there are enough hacks and scams already done, enough damage, and people are well prepared with explanations from Binance. Also, the good trick is that the few expected market will face enough pressure and prices will also go down enough, but nothing will happen because awareness and knowledge are giving support. The price is standing at $77K, and there are more chances it's going to have a good increase in the coming few days because stocks are also under pressure after a few tech companies are not having required results, and analysts are feeling this will also give good support to Bitcoin. The current price recovery news is also a big success, hopefully now they will also be done with a few things that need to be done.

[EstherBtc]

I got an email from binance concerning the hack on their exchange, they didn't deny the fact that the exchange was hacked rather they reassured me that my funds is safe, the amount in their reserve and the amount that has been frozen. This good PR for real.
I am happy Bitcoin is maturing and these recent hacks on bitcoin is not taking a negative toll on it.

[Renampun]

If it’s just ETFs, it's still unlikely to hold up if the market reacts that negatively.. This is more about the holders who are smarter now in dealing with market events.. So even though the losses from this hack are huge and target one of the largest exchanges globally.. It doesn't make the market react that negatively. 

Especially in the statement recently released by Binance, they mentioned that this hacking case has been thoroughly handled and they will cover the losses from the company’s $5 billion reserves and buy an additional $1.34 billion in cryptocurrencies to cover the total amount that was hacked.. With this statement, at least it can reassure users and the public that they are capable of handling the losses from this hack.

[osasshem]

I got an email from binance concerning the hack on their exchange, they didn't deny the fact that the exchange was hacked rather they reassured me that my funds is safe, the amount in their reserve and the amount that has been frozen. This good PR for real.
I am happy Bitcoin is maturing and these recent hacks on bitcoin is not taking a negative toll on it.

I got same message as well.
Their confidence and reassurance is what will keep the platform going for years to come. They know how to keep calm their users in other to reduce panic around the market.

If this was the early years of Bitcoin, the market would have seen a very severe drop in price, but this hack didn't affect the price that much, showing maturity of the market over some events that may occur even in years to come.

[Hamza2424]

As per my understanding, whenever there is an exchange hack, the Bitcoin price does go down. This time, one of the biggest crypto exchanges got hacked and they are saying that NK hackers are responsible. The hack is not in the millions but in billions of USD. Some countries need to survive with the amount that was hacked, which is estimated at more than $6 billion.
My Bitcoin ETF analysis of mine came up with these questions

• Did ETF inflow stop the panic, as the market cap still looks strong, as does the price?
• Or are Bitcoin holders now normalized to such hacks?
• Or do you think other factors are the reason why the Bitcoin price is still holding on?

They never said the hackers could be NK. They said we don't know anything yet and are investigating, but all fingers are already pointing towards them due to their background. But who knows? We just have to wait.

No, ETF inflows will probably increase, but not for everyone. People would choose self-custody over ETFs for several reasons. Because if we take our funds to ETFs, then it will become so much easier not just for hackers but also for those authorities to handle us, because now there will be fewer places where hackers have to work. Although they have probably sped up their work using AI.

But now, with multiple ways to store and hold our funds for the long term, we can get better options and fewer chances of a monopoly in the system.

Also, some are so used to it now that they say every bear run has hacks, and in a bull run, no one remembers them, haha, except those affected. So maybe these hacks are for a reason to dump the market, but this would require a lot of strings to be pulled off artificially. But it's real.

[Davidvictorson]

Why should Bitcoin dump? Was it Bitcoin that was hack or the Binance exchange.

Great question. I think we have gone past the days of panic selling. Bitcoin has progressed past the phase of a reactionary movement in price because of the hack of a single platform. I can speculate that one of the reasons is because there are more people including financial institutions holding large amounts of bitcoins compared with the past when it was just a few. In the end, these hacked exchanges will be alright, they seem very prepared for these certain uncertainties. I know this because this is not their first experience.

[pawel7777]

I've seen headlines about Binance getting hacked earlier but I didn't make much of it, thinking it's probably a few $ million leak.
My jaw dropped when I learned just now that they lost $6.3 billion. That's a huge amount and the biggest hack in the history of crypto. Needless to say the famous SAFU fund will not be enough to reimburse all customers.

They suspect North Koreans. Apparently it was a very sophisticated hack, when they managed to compromise Binance's own transaction authorisation infrastructure.

But things might not be all that bad as I'm hearing a lot of stolen stablecoins got frozen, but it still will be a few $ billions at least.

[RGBTC]

Anyt heist in Crypto is now inadvertently blamed on NK! Poor Kim.

Haha, yeah. The link between North Korea and the Lazarus Group is, thus far, based on a consensus among global analysts and intelligence agencies. In reality, proving this connection is difficult, given that we can't (to put it simply) track the country’s financial flows with any certainty.

Nevertheless, I am inclined to believe that these allegations are not merely the result of a 1 to 2 year investigation, but rather the product of decades of scrutiny.

[Abiky]

Why should Bitcoin dump? Was it Bitcoin that was hack or the Binance exchange.
Traders are getting smarter, why sell Bitcoin because Binance was hacked, it doesn't make any sense. The 5% wasn't necessarily but market reaction will do what it's known for. From the calculation, the total amount of stolen funds is $6.3b and $3b was frozen, what's left with the hacker is $3b and they promised to buy back the stolen Bitcoin. Not only that, they promised to buy back the stolen coins, that's a relief to maintain the market and the market will recover soon.
It will sound dumb for when an exchange is announced to be hacked people panic to even sell their coins. Not defending the centralized exchange mafias, but those guys are crooks to defend the price in many ways, CZ alone is worth $100B, what was taken is a fraction to the company.

I don't know the correlation between ETF here, all attention has been on how some of the stolen funds are moving, there is no any massive reports of ETF moving Bitcoin to exchange to sell.

History has shown us that Bitcoin experiences a huge dip in market prices after a prominent crypto exchange falls victim to a hack. Like Mt. Gox, and FTX. With Binance being the largest crypto exchange in the world, news like these should have a severe impact over BTC's market prices. It only fell by a small percentage, showing us that traders aren't panicking. I guess institutional investors' involvement in Bitcoin has something to do with this. Back then, it was all about retail investors. So if an exchange suffered a hack or collapsed all of a sudden, retail investors would sell out of panic.

Thank goodness Bitcoin hasn't dipped any further. I'm now more convinced that Bitcoin's volatility issue will eventually be resolved in the long-term. There will be less volatility until BTC becomes almost as "stable" as Gold. I'd take the current opportunity to buy more BTC at a discount. Just keep on "hodling".

[Woodie]

I think the sop in Bitcoin price happened because hacker was aggressively selling some tokens before these centralized entities triggered the freeze on the stolen asset's , and to avoid the panic Binance too put a suspension on deposits/withdraws to take charge of the situation and honestly th drop could have been worse.. And talking of ETFs don't know how they get connected to this conversation but I think everything is around Binance themselves, and that 3 billion that's also frozen did some damage control too..

[Ishicryptic]

I've seen headlines about Binance getting hacked earlier but I didn't make much of it, thinking it's probably a few $ million leak.
My jaw dropped when I learned just now that they lost $6.3 billion. That's a huge amount and the biggest hack in the history of crypto. Needless to say the famous SAFU fund will not be enough to reimburse all customers.

They suspect North Koreans. Apparently it was a very sophisticated hack, when they managed to compromise Binance's own transaction authorisation infrastructure.

But things might not be all that bad as I'm hearing a lot of stolen stablecoins got frozen, but it still will be a few $ billions at least.

I guess that the Bitcoin market is becoming comfortable with these frequent hacks in Crypto related markets but I have to say that this Binance hack is the biggest and who knows which platform is next in line since these sophisticated hackers are on a jamboree. When I learnt about the hacked amount I thought that it was going to affect the market to cause FUD and a major dip but I guess the impact is not hitting hard enough yet. This is a very big problem for the crypto space, if a big exchange like Binance can be hacked to amount that runs into billions of dollars and we're already getting used to it then it is becoming business as usual for these hackers. I guess that AI is at the root of these sophisticated hacks and I hope that exchanges and casinos should utilize it to protect themselves so that hacks cannot penetrate their securities.

[pooya87]

As per my understanding, whenever there is an exchange hack, the Bitcoin price does go down.

Not always. It usually depends on the current trend and the level of FUD.
In a bear market with a massive FUD attack the price will go down.
Other times, specially during bull runs, such attacks would be completely ingored.

This time, one of the biggest crypto exchanges got hacked and they are saying that NK hackers are responsible.

They cannot know it this fast and they usually blame it on NK whenever they want to say "it is out of our jurisdiction so we cannot get your money back. deal with it".

Did ETF inflow stop the panic, as the market cap still looks strong, as does the price?

I don't think so. This is not the first time the market shows a small reaction to an altcoin exchange's hack. And there hasn't been that big a FUD about it to cause mass panic sells.

Or are Bitcoin holders now normalized to such hacks?

This is more likely (the market is maturing for sure) but I think the lack of large scale FUD is important too.

I personally feel that the Bitcoin ETF has become a main contributor controlling the price of Bitcoin. Do you agree with my conclusion, or do you have a different opinion?

Why would it be? They are investors as well. If their speculation were that the market would react negatively, they would act accordingly too. It's not like they would expect a crash but continue putting their money in.

[Catenaccio]

Not always. It usually depends on the current trend and the level of FUD.
In a bear market with a massive FUD attack the price will go down.
Other times, specially during bull runs, such attacks would be completely ingored.

Fuds can be reused and same fuds can appear in both bull market and bear market, however a bear market is more sensitive and vulnerable with bad news including fuds. Fuds show biggest effects in bear markets than effects in bull markets, and it's can be checked and compared with fuds about Bitcoin ETF refusals many times.

The first Bitcoin Spot ETF was applied in 2013, and many years after that, there were many more applications together with many speculations on approvals or refusals, then actual news about refusals, while effects were bigger in bear markets.

Bull runs are not fud-free but during a bull market, with a lot of positive news, and good capital momentum, Bitcoin has very good support from new capital, new demand, new buying forces, so that its price won't crash too much when fuds appear.

[joniboini]

I guess that the Bitcoin market is becoming comfortable with these frequent hacks in Crypto related markets but I have to say that this Binance hack is the biggest and who knows which platform is next in line since these sophisticated hackers are on a jamboree.

I'm not sure about becoming comfortable. It's not like past cases stop people from depositing a huge amount of money into exchange and let them sit there to begin with. Beside, the reply after OP makes more sense as the reason why the market didn't react that strongly, with funds recovery guarantee and whatnot. I think it make sense for traders to keep their coins and move to other places if they don't trust their current exchange too instead of dumping their coins. Several local exchanges in my area got hit with hacks recently, and while the users are panicking, they're not in a hurry to sell their coins.

[Outhue]

If this hack happened in 2021 it would have been total chaos but it's 2026, having ETF and institutions involvement brings confidence to Bitcoin market and then again, this isn't a case of Bitcoin getting hacked itself, it's a crypto exchange that got hacked, if people react negatively to this it's because they don't understand what they are doing, I expected quick recovery like it's happening already but this doesn't mean that we are out of the woods yet, this might not be the bottom.

[KawasakiNinja1_]

The popular Binance hack, despite being the biggest hack in crypto history, has not caused panic. Binance has been consistently reassuring that users’ funds are completely safe and that they are taking responsibility for the hack. I myself was affected by this hack, yet there is no panic and no new action is in the offing. It seems like nothing happened and our funds are still safe, so there is no reason to panic.

Traders and investors are now very familiar with these incidents, while exchange hacks have historically caused panic among crypto users, but this is no longer the case. Especially since Binance is promising to refund customers’ money, there is no room for panic here.

See the biggest hack in crypto history didn't cause any panic what is your reasoning for saying this, but it is true that Binance has been continuously admitting that they are taking responsibility for this hack and users' funds are completely safe. This is worth watching because the exchange hack caused the price of the largest currency Bitcoin to drop by almost 5% and the price of the platform's specific token BNB by more than 6%, also observe that the prices of other coins have decreased.

Even i noticed that Binance mentioned that they will fully compensate their users for the stolen funds and for this they have set aside more than 6.34 billion dollars and it is reasonable that right now users are not able to withdraw their crypto assets which they are worried about.

P Binance will fully cover the loss of funds stolen in this incident through the Secure Asset Fund for Users (SAFU) and the company’s own funds. We have committed the resources needed to fulfill this pledge, setting aside more than $6.34 billion in company funds. More than $5 billion worth of the corresponding token assets are already in place, including USDC, USDT, BTC, ETH, and BNB, replenishing approximately 80% of the stolen funds.

[Doan9269]

So surprised when I heard that the Binance exchange was also hacked, and this is getting to be ing too much these days. Everyone using a centralized exchange should be more careful and try to move their assets to a non-custodial wallet if they truly cherish what belongs to them.

We are only hearing about what is happening now, but don't know what is ahead in the future coming, maybe it could be even more worse than this or there will be protection to cover, this is where we must always prepare ourself for the worst and expect the best come.

[Proty]

I think there maybe other reasons why there is no major decline in price of bitcoin  despite the fact that binance was hacked. This may not necessarily because of ETF supporting the price. As we all know,  bitcoin is gaining widespread adoption  and different investors have their reasons why they are holding bitcoin. Not all investors will sell their bitcoin because binance was hacked and not bitcoin itself. It is more of  how they see the situation that will cause then to panic. Therefore, OP thinking that it is only ETF that is supporting the price is definitely wrong.

[knuckey]

The price drop was caused by cell panic. In situations like this, investors would think, "The price will definitely go down." What we see is that the price only dropped 6%. This is because the hacked assets haven't been fully sold and are still being processed to be kept secret. It's not easy to sell them instantly. The conclusion is that because the thieves haven't sold their Bitcoins, the market hasn't been affected yet.

[avp2306]

As per my understanding, whenever there is an exchange hack, the Bitcoin price does go down.

Not always. It usually depends on the current trend and the level of FUD.
In a bear market with a massive FUD attack the price will go down.
Other times, specially during bull runs, such attacks would be completely ingored.

Correct, this situation depends on level of FUD.

But in case of Binance they actually manage to settle down the emotion of their traders, as well as those people following the case. That SAFU words is truly a big thing, because many people hold unto that promises that nothing happen and they can compensate their user if there's someone got affected by that hack.

That's why this latest hacking issue, didn't give much deeper bad effect on Bitcoin.