Fitch says bitcoin's calm reaction to $6.3B Binance hack signals a tougher crypto market

Fitch Ratings is calling bitcoin's response to the Binance attack a sign of resilience. The price slipped roughly 6% over 10 hours once the first reports landed, a modest move for an industry that has historically panicked harder. Binance has not been alone in the crosshairs — assets were lifted across several blockchains.

The numbers are staggering. The attack kicked off on October 29, and the total value of stolen assets was put at $6.3 billion, which Fitch said could make it the largest cryptocurrency theft on record. About 18,270 bitcoins were among the haul, worth roughly $1.5 billion at the time. Binance paused trading and withdrawals, then started bringing withdrawal services back on November 1.

Trading got loud even as prices held. Daily bitcoin volume climbed by 67%, now at about $40.9 billion, against a 30-day average of $27 billion, according to CoinMarketCap figures cited by Fitch. The agency also pointed to broader market weakness and leveraged positions as contributors to the drop.

Stack the reaction against past routs and the contrast pops. Bitcoin fell 35% during the March 2020 coronavirus crisis, 14% after FTX collapsed in 2022, and 21% following the Bitstamp hack in 2015. Fitch credits a crypto market that is now deeper and more diversified for the smaller disruption.

For bitcoin-backed securities, Fitch flagged what still matters: conservative collateral coverage, short collateral liquidation periods, and access to multiple trading venues. Cyberattacks can choke off access to collateral and delay its sale even when overall market liquidity looks healthy. The agency said this incident on its own does not change its analytical view of those securities.