Bitcoin trades near $78,000 as investors weigh Binance security breach
Cryptocurrency markets show signs of stabilisation following a $6.3 billion hack at Binance and recent sell-offs.
Bitcoin was trading near the $78,118 mark on Monday, according to the Economic Times. The cryptocurrency's price stability comes as market participants evaluate the impact of a reported security breach at Binance.
Prateek Gupta, Head of business at Mudrex, said Bitcoin fell to $76,400 on Friday, marking its lowest point since mid-September. He noted that the $6.3 billion Binance hack caused market uncertainty and led to nearly $1.57 billion in futures liquidations. Binance has stated that 95 per cent of the affected assets have been covered.
Institutional interest has seen a decline, with US spot Bitcoin ETFs seeing $643 million in outflows on Friday. This ended a four-day period of inflows, bringing weekly net outflows to approximately $202 million. Riya Sehgal, Research Analyst at Delta Exchange, added that Ether ETFs also experienced around $431 million in outflows.
WazirX Founder Nischal Shetty said Bitcoin and Ether staged a modest recovery after last week's sell-off, though both remained lower over seven days. He noted that the market remains cautious ahead of the US midterm elections on Tuesday, October US jobs data, and central bank decisions.
Vikram Subburaj, CEO of Giottus, said Bitcoin's rebound reflects relief as Binance reports stabilising withdrawals. He advised investors to keep new purchases small before November 6 and to avoid leveraged bets on the recent 1.11 per cent daily gain.