New York:Bitcoin's response to the recent $6.3 billion hack of Binance indicates increased resilience in the cryptocurrency market, as observed by Fitch Ratings.
According to Anadolu Agency, the theft, which began on October 29, involved digital assets stolen across multiple blockchains, potentially marking the largest cryptocurrency theft to date. Among the stolen assets were approximately 18,270 bitcoin, valued at around $1.5 billion at that time. Binance temporarily halted trading and withdrawals before gradually resuming withdrawal services by November 1.
Following initial reports of the attack, bitcoin's price dropped by approximately 6% over a 10-hour period. However, broader market conditions and leveraged positions also played a role in this decline. Despite the hack, daily bitcoin trading volumes increased by 67% to approximately $40.9 billion, significantly higher than the 30-day daily average of $27 billion, as per CoinMarketCap data referenced by Fitch.
Fitch compared the relatively mild price movement to previous significant declines in bitcoin's history, such as a 35% drop during the March 2020 coronavirus crisis, a 14% fall after the collapse of FTX in 2022, and a 21% decline during the 2015 Bitstamp hack. The agency attributed the current stability to the deeper and more diversified crypto trading market structures.
The evolving trading ecosystem, which reduces dependency on single exchanges, plays a crucial role in maintaining liquidity during disruptions of major platforms, Fitch noted. For bitcoin-backed securities, the incident emphasizes the necessity for conservative collateral coverage, brief liquidation periods, and access to multiple trading platforms.
Fitch warned that while cyberattacks may disrupt access to collateral and delay its sale, the overall market liquidity remains robust. The agency concluded that the incident alone does not alter its analytical perspective on bitcoin-backed securities, but further analysis could support the notion that bitcoin market liquidity and infrastructure are becoming more robust as the asset class evolves.