Binance hack points to stronger bitcoin market resilience: Fitch

Bitcoin’s relatively contained response to the recent $6.3 billion Binance hack suggests the cryptocurrency market has become more resilient to industry-specific shocks, Fitch Ratings said Monday.

The attack began Oct. 29, with digital assets stolen across multiple blockchains in what could be the largest cryptocurrency theft to date, the agency said.

The stolen assets reportedly included around 18,270 bitcoin, worth approximately $1.5 billion at the time. Binance temporarily halted trading and withdrawals before beginning to restore withdrawal services Nov. 1.

Bitcoin fell approximately 6% in the 10 hours following initial reports of the attack, although broader market weakness and leveraged positioning also contributed to the decline.

Daily bitcoin trading volume rose 67% to about $40.9 billion, compared with a daily average of $27 billion over the preceding 30 days, according to CoinMarketCap data cited by Fitch.

The agency described the price movement as relatively contained compared with bitcoin’s worst daily decline of 35% during the March 2020 coronavirus crisis, a 14% drop following the collapse of FTX in 2022, and a 21% fall during the Bitstamp hack in 2015.

“We believe the lower level of disruption is probably due to crypto trading market structures having become deeper and more diversified,” Fitch said.

A broader trading ecosystem reduces reliance on individual exchanges and helps sustain liquidity when a major platform experiences disruptions, it added.

For bitcoin-backed securities, the incident underscores the importance of conservative collateral coverage, short liquidation periods, and access to multiple trading venues.

Cyberattacks can disrupt access to collateral and delay its sale, even when liquidity across the wider market remains strong, Fitch warned.

The agency said the incident alone does not change its analytical view of bitcoin-backed securities. However, further analysis could strengthen evidence that bitcoin market liquidity and infrastructure have become more resilient as the asset class matures.