Bitcoin fell 0.83% to $77,206.83 over the past 24 hours and underperformed a slightly weaker broader market. The move was driven primarily by a massive security breach at Binance, while Bitcoin’s strong 75% correlation with the S&P 500 showed a shared macro-driven reaction during a tech stock sell-off.
The security breach on October 29 to 30 resulted in the theft of approximately $6.3 billion from Binance hot wallets, the largest crypto hack on record according to Yahoo Finance. The news triggered immediate panic selling across crypto markets and pushed Bitcoin to a five-week low near $76,300. The decline was exacerbated by a simultaneous sell-off in US tech stocks, with which Bitcoin showed a high correlation. The event was a classic black swan that shook confidence, but Bitcoin’s relatively modest drop compared with past exchange hacks suggests a maturing market with institutional buffers such as spot ETFs. Watch for the phased resumption of Binance withdrawals, targeted within about 34 hours of their October 30 update. A smooth process could help restore calm.
The initial sell-off triggered a violent unwinding of leveraged positions. Over 24 hours, total crypto liquidations surpassed $1.5 billion, with long positions accounting for roughly 86% of the total. Bitcoin-specific liquidations neared $500 million according to CoinGlass. This created a feedback loop in which forced selling pushed prices lower and triggered more liquidations. The market was overly optimistic and vulnerable, and the liquidation cascade turned a concerning event into a sharp technical sell-off. Watch for shifts in aggregate funding rates and open interest. A return to neutral or positive funding would signal that leveraged selling pressure is abating.
The near-term technical structure is defined by the recent low of $76,600 and the 200-day moving average near $73,107. A key upcoming event is the US midterm election on November 3, which could sway regulatory sentiment for crypto. If Bitcoin finds sustained buying above $76,600, a retest of the $79,107 resistance level is the base case. However, a daily close below $76,600 would invalidate that setup and likely target the next major support zone around $73,107. The market must also digest the ongoing fallout from the Binance hack and its impact on broader sentiment. The trend is bearish in the very short term, but key support levels are now being tested, and the reaction at these levels will determine the next directional move. Watch price action around $76,600 and any statements from Binance regarding the completion of security remediation and proof-of-reserves.
The market outlook is cautiously bearish while support is being tested. The combination of a major exchange hack and a violent deleveraging event has pushed Bitcoin into a critical support zone. While the direct panic may be subsiding, the market remains fragile as it processes the security and liquidity shocks. The key watch is whether Bitcoin can defend the $76,600 support level through the weekend, or whether uncertainty ahead of the US midterm elections on November 3 pushes it toward the next major floor at $73,107.
