Crypto Liquidations Surge to $1.57 Billion Following Binance Hack
Written with artificial intelligence.
Crypto liquidations reached $1.57 billion as Bitcoin fell to $76,400 amid a $6.3 billion hack of Binance, the largest cryptocurrency exchange. The incident is linked to North Korean hackers, causing significant market volatility.
Market Impact of the Binance Hack
Bitcoin (BTC) plummeted to its lowest price since mid-September, hitting an overnight low of $76,400 before partially recovering to around $76,827. The decline was triggered by a $6.3 billion hack of Binance, attributed to North Korean hackers according to analytics firms TRM Labs and Elliptic.
Ether (ETH) also experienced volatility, dropping to $2,170 before rebounding to approximately $2,220. Overall, the hacking incident led to a spike in crypto futures liquidations, totaling $1.57 billion.
Additional Market Context
The hack has halted withdrawals on Binance and resulted in around $3 billion of the stolen funds being frozen. Concurrently, tech stocks faced downward pressure, with the Nasdaq-100 index futures declining by 2.3%, influenced by Amazon’s increased capital spending forecast and Intel’s disappointing guidance, which caused its stock to fall by about 25%.
Despite the turmoil, U.S. spot bitcoin ETFs experienced inflows of $17 million on the day prior to the hack, marking four consecutive days of positive investment activity.
This article is for information only and is not investment advice.