TLDR
- Bitcoin price dropped roughly 2% to around $78,420 as the market reacted to Binance’s $6.3 billion security breach.
- Crypto liquidations reached $1.54 billion over 24 hours, with long positions accounting for approximately $1.3 billion.
- Binance said about $3 billion in affected assets had been frozen and pledged to cover losses through its SAFU fund and company resources.
- US spot Bitcoin ETFs attracted fresh inflows, while $80,188 emerged as an immediate resistance level for BTC.
Bitcoin Price Slides as Leveraged Positions Unwind
Bitcoin price remained below $80,000 on October 30 as traders responded to the Binance breach and a wave of forced position closures.
At the attached report’s market snapshot, BTC traded near $78,420, down roughly 2% over 24 hours. The cryptocurrency had briefly slipped below $77,000 before recovering some ground.
CoinGlass figures cited in the report showed approximately 239,000 traders liquidated during that period. Total liquidations reached $1.54 billion, including around $1.3 billion in long positions.
The imbalance shows that traders betting on higher prices absorbed most of the damage. Forced closures of leveraged bullish positions can intensify a decline, adding selling pressure as the market moves lower.
The largest individual liquidation reported was an $11.09 million BTC/USDT position on Binance.
Binance Outlines Breach and Recovery Efforts
In its security incident update, Binance estimated the breach’s impact at approximately $6.3 billion. The exchange said coordination with blockchain partners had helped freeze roughly $3 billion on-chain.
Its 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 said it had found no evidence of leaked wallet private keys. Those findings remain preliminary, with a detailed technical account expected after investigators establish what happened.
Binance also pledged to cover losses using its SAFU emergency fund and company funds. It said an updated proof-of-reserves report would follow remediation.
The recovery effort remains a central issue for traders assessing the fallout. Frozen assets reduce the amount potentially lost, but they do not by themselves establish when funds will be recovered or how the remaining shortfall will be covered.
Rate Decision Adds to Market Uncertainty
The sell-off followed an already difficult stretch for Bitcoin in the news today.
According to the attached report, the Federal Reserve held its benchmark interest rate at 3.75%–4% on October 28, while two officials supported a quarter-point increase. Bitcoin subsequently fell below $80,000 before the Binance incident added another source of uncertainty.
The rate backdrop and exchange breach presented separate pressures. One concerned monetary policy and investor appetite for risk; the other raised questions about exchange security and the recovery of affected assets.
Their timing helps explain the cautious market environment, although it does not establish how much of Bitcoin’s decline came from either development.
Bitcoin ETF Inflows Offer a Mixed Signal
Institutional fund flows were more resilient than the broader market.
SoSoValue data cited in the attached report showed US spot Bitcoin ETFs recording $17.07 million in net inflows on October 29. That extended their positive streak to four trading sessions.
The previous three sessions had attracted approximately $423.66 million combined, following about $773.5 million in outflows on October 22 and 23.
The return of inflows suggested continued demand through ETF products. However, those purchases
