Bitcoin, Ethereum, XRP and other major cryptocurrencies have suffered heavy losses as a reported $6.3 billion Binance hack rattled investors and triggered more than $1.5 billion in liquidations across the crypto market.
Summary
- Bitcoin fell below $77,000 during the market selloff, while Ethereum dropped under $2,200 and XRP, Solana and other major altcoins recorded heavy losses.
- More than $1.5 billion in leveraged crypto positions were liquidated over 24 hours, with traders betting on rising prices accounting for most of the losses.
- The decline followed reports of a $6.3 billion security breach at Binance, which suspended withdrawals and said it would cover customer losses.
- Bitcoin and Ethereum recovered some of their losses on Friday, although both remained below their levels before the selloff.
- Crypto futures open interest fell to approximately $136.3 billion, while trading volume rose 74% as traders reduced their exposure during the market downturn.
According to CoinGlass data, roughly $1.55 billion in leveraged positions were liquidated over 24 hours, with traders betting on higher prices accounting for most of the losses.
Bitcoin fell below $77,000 during Thursday’s selloff, reaching an intraday low near $76,400 before recovering some ground. Ethereum briefly dropped below $2,200, while XRP, Solana, BNB and Dogecoin recorded losses as selling spread across major cryptocurrencies.
The decline followed news of a security breach at Binance, which estimated that approximately $6.3 billion in crypto assets had been affected. The exchange subsequently suspended withdrawals while investigating the incident and said it would cover customer losses.
Bitcoin, Ethereum and XRP lead crypto market losses
Bitcoin was trading near $76,664 late Thursday, down approximately 4.5% over 24 hours, according to market data reported by The Block. Ethereum fell 5.2% to around $2,190, while XRP lost 7% to trade near $1.21.
BNB, the cryptocurrency associated with Binance, dropped 7.1% to approximately $698.65 during the same period.
Solana slipped toward $95, while Dogecoin traded near $0.075 as the selling continued across the altcoin market.
By Friday morning, some cryptocurrencies had recovered part of their losses. Bitcoin returned toward $78,500, while Ethereum traded around $2,240, although both remained below their levels before the selloff.
As crypto.news previously reported, Bitcoin’s decline followed the Binance security incident, with pressure from leveraged liquidations and uncertainty over the exchange’s losses weighing on prices.
The market was already dealing with concerns over US monetary policy after the Federal Reserve kept interest rates unchanged at 3.75% to 4%. Two officials favored a rate increase, according to the earlier report.
Crypto liquidations cross $1.5 billion as long traders suffer
The decline hit leveraged traders particularly hard, with CoinGlass recording approximately 246,482 liquidated traders over 24 hours.
Long positions accounted for roughly $1.34 billion of the $1.55 billion liquidated during the reporting period. Traders holding leveraged bets on rising cryptocurrency prices faced forced closures as the market fell.
Bitcoin accounted for approximately $499 million in liquidations, followed by Ethereum at $358 million. Solana saw around $82.6 million in liquidated positions, while XRP and Dogecoin recorded $38.1 million and $18.6 million, respectively, according to a separate CoinGlass snapshot.
Binance handled approximately $754.6 million in liquidations, representing nearly half the market total in that snapshot. Hyperliquid followed with $251.4 million, while Bybit recorded $186.5 million.
The largest single liquidation was an approximately $11 million Bitcoin long position on Binance.
Forced liquidations occur when leveraged traders no longer have sufficient collateral to maintain their positions. Exchanges automatically close the trades, which can generate further selling when prices are already falling.
Some traders betting on additional losses were subsequently caught by the recovery. Short positions accounted for $57.3 million of the $85 million liquidated during one four-hour period on Friday.
Binance hack adds pressure to an already weak market
The selling intensified after Binance disclosed a major security breach on Thursday, with blockchain investigators tracing billions of dollars in stolen assets across several networks.
Binance said approximately $3 billion in affected assets had been frozen with assistance from industry partners, while security checks continued.
Blockchain analytics firms TRM Labs and Elliptic linked the attack to North Korea-associated hackers. Binance had not publicly identified the attackers at the time of the initial reports.
The incident affected several tokens beyond Bitcoin and Ethereum. Uniswap and Aave had fallen around 11% on Thursday as the attacker exchanged stolen holdings, according to blockchain activity cited in market reports.
Ethena’s ENA token faced selling pressure after transactions linked to the attacker, although it later recovered alongside several other cryptocurrencies.
Technology stocks were under pressure during the same period. Nasdaq 100 futures fell 2.3% after Amazon raised its capital spending forecast, while Intel shares declined following disappointing guidance.
The weakness in technology shares coincided with losses in crypto-related equities, including Strategy and Robinhood.
Crypto traders reduce exposure as market volatility rises
Derivatives market data showed a decline in outstanding futures positions as traders responded to the selloff.
Total crypto futures open interest fell 3% to approximately $136.3 billion, while trading volume climbed 74% to $346.1 billion, according to Friday’s market figures.
Solana’s open interest declined 13.3%, compared with a 3.3% fall in its price. Ethereum recorded a 5.8% decline in open interest, while Bitcoin’s fell 1.4%.
Options activity showed increased demand for downside protection. Five of the six most actively traded Bitcoin options were puts, with the $74,000 contract expiring November 13 attracting the most volume.
Ethereum traders showed similar positioning, with the $2,000 put expiring November 13 recording more than twice the volume of any other Ethereum option.
CoinMarketCap’s Fear and Greed Index fell to 36 from 43, while its Altcoin Season Index declined to 45 from 54.
