Bitcoin Sinks Below $77k as Binance Security Breach Stokes Sell-Off
Bitcoin (BTC) price is down 4.51% to $76,846.74, underperforming a broadly weaker crypto market, driven by a major security breach at Binance that triggered a leveraged sell-off.
The price depreciation mirrored a strong correlation (82%) with the Nasdaq-100 ETF (QQQ), indicating a shared tech-driven, risk-off move.
Binance security incident, which saw an estimated $6.3 billion in assets affected, sparked immediate selling and a cascade of long liquidations. A hack affecting roughly $6.3 billion in assets on Binance, the world’s largest exchange, was disclosed on October 29.
This event directly eroded confidence, triggering a market-wide sell-off. Analysts noted the incident led to about $1.54 billion in total crypto liquidations, with forced selling accelerating Bitcoin’s decline below $77,000.
The hack acted as a systemic shock, reminding markets of exchange counterparty risk and prompting a flight to safety.
The sell-off was exacerbated by a violent unwinding of leveraged positions. Bitcoin saw $360.22 million in liquidations over 24h, with long positions making up 76% of the total.
The sharp 113% spike in Bitcoin’s spot volume confirms the move was driven by high-conviction selling, not just sentiment. Excessive leverage magnified the downward move, creating a liquidation cascade that pushed prices lower faster.
Technicals show Bitcoin is testing critical support. The daily RSI at 36.99 is nearing oversold territory, which can precede a short-term bounce. The key Fibonacci swing low from the recent drop is $76,189.88.
The market structure is bearish but reaching a potential inflexion point. Holding above $76,189 could stabilise prices, while a breakdown opens the path to the 200-day average near $73,107.
Bitcoin’s reaction at the $76,189 support and any shift in spot Bitcoin ETF flows, which saw a fourth consecutive day of inflows but at a slowing pace.
The combination of a major exchange hack and a derivatives reckoning has overwhelmed recent positive ETF flows, applying intense selling pressure. Nvidia’s $3bn Meta Bet Exposes Major AI Unknown
