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Bitcoin traded near $78,420 on October 30, down roughly 2% over the preceding 24 hours, as the market absorbed the impact of a $6.3 billion security breach at Binance and a recent Federal Reserve interest rate decision. The cryptocurrency briefly slipped below $77,000 before recovering some ground, leaving $80,188 as an immediate resistance level for traders.
Binance Outlines Breach and Recovery
Binance estimated the financial impact of the security incident at approximately $6.3 billion. In its update, the exchange stated that coordination with blockchain partners helped freeze roughly $3 billion in assets on-chain. Binance pledged to cover the remaining losses using its SAFU emergency fund and company funds, adding that an updated proof-of-reserves report would follow the completion of remediation efforts.
The exchange’s preliminary investigation pointed to a compromised DevOps engineer’s laptop. According to Binance, the attacker may have used that access to enter a service container and submit unauthorized withdrawal transactions. The company reported finding no evidence of leaked wallet private keys, though it noted that these findings remain preliminary. A detailed technical account is expected once investigators establish the full scope of the event.
Liquidations and ETF Flows
The price decline coincided with a significant wave of forced position closures. CoinGlass figures indicated that approximately 239,000 traders were liquidated during the 24-hour period. Total liquidations reached $1.54 billion, with long positions accounting for approximately $1.3 billion of that total. The largest individual liquidation reported was an $11.09 million BTC/USDT position on Binance.
The sell-off followed a Federal Reserve decision on October 28 to hold its benchmark interest rate at 3.75%–4%. Two Federal Reserve officials supported a quarter-point increase in rates during that meeting. Bitcoin had fallen below $80,000 prior to the Binance incident, meaning the market faced simultaneous pressures from monetary policy and exchange security concerns.
US spot Bitcoin ETFs showed resilience amid the broader market decline. SoSoValue data showed that these funds recorded $17.07 million in net inflows on October 29, extending their positive streak to four trading sessions. The previous three sessions had attracted approximately $423.66 million in combined inflows, a reversal from the approximately $773.5 million in outflows recorded on October 22 and 23.
Frequently Asked Questions
How much did Binance freeze in assets from the breach?
Binance stated that coordination with blockchain partners helped freeze roughly $3 billion in assets on-chain. The exchange estimated the total impact of the breach at approximately $6.3 billion.
What was the Federal Reserve interest rate decision on October 28?
The Federal Reserve held its benchmark interest rate at 3.75%–4% on October 28. Two officials supported a quarter-point increase in interest rates during the meeting.
