Bitcoin Drops 2.5% to $78,089 as $6.3B Binance Hack Jolts Crypto Markets Now

Bitcoin dropped on Friday after a reported $6.3 billion security breach at Binance, the world’s largest cryptocurrency exchange, triggered widespread selling across digital assets. The exchange said it had frozen approximately $3 billion of affected funds and would cover all customer losses. The announcement helped Bitcoin recover some intraday losses, but market confidence remained fragile. At 04:55 ET, Bitcoin traded 2.5% lower at $78,089.5, putting it on track for an October decline of nearly 7%.

Binance halts withdrawals after $6.3B hack

The breach, which occurred late Thursday, is potentially the largest cryptocurrency theft recorded by value. Binance said its preliminary investigation indicated that an attacker may have gained access through a compromised laptop belonging to a DevOps engineer. The attacker allegedly used access to an internal service to authorize unauthorized withdrawals. Binance said it had found no evidence that wallet private keys were leaked and was continuing to investigate the incident.

The reported $6.3 billion impact is more than four times the approximately $1.5 billion stolen during the 2025 Bybit hack. Blockchain data cited in the initial reports identified several major assets among those affected, including approximately $1.66 billion in Tether (USDT), 17,985 Bitcoin worth around $1.45 billion, and $767 million in USD Coin (USDC). Ether and other altcoins were also reportedly involved.

Binance temporarily suspended deposits and withdrawals while conducting security checks. It said customer funds remained safe and pledged to cover all losses through its Secure Asset Fund for Users (SAFU) and company resources.

Stablecoin issuers also moved to restrict the movement of affected assets. Circle, the company behind USDC, reported freezing more than $800 million linked to the incident, while Tether said it had frozen over $1.567 billion in USDT. Binance separately reported approximately $3 billion frozen through its broader recovery effort.

Bitcoin faces another weak October

The security breach added to existing pressure from elevated U.S. inflation concerns, higher interest rates and weaker appetite for risk-sensitive investments. Bitcoin’s expected October decline would mark a second consecutive year without the seasonal rally commonly called “Uptober.”

The cryptocurrency had advanced during the July-September quarter but subsequently lost momentum. It also remained substantially below its October 2025 record high, highlighting the scale of the market correction.

Altcoins slide as BNB trims losses

The selloff extended across major cryptocurrencies as investors assessed the possibility of further disruption from the stolen assets. Some tokens recovered part of their intraday losses after Binance promised to reimburse customers.

At the reported market snapshot:

• BNB, Binance’s native token, fell 6.3% to $705.47 after dropping as much as 8%.
• Ether declined 3.9% to $2,229.24.
• XRP dropped 2.9% to $1.2541.

Conclusion

Bitcoin’s decline toward $78,000 demonstrates how a major exchange security failure can quickly affect confidence across the digital-asset market. Binance’s commitment to reimburse customers and freeze affected funds may help contain immediate concerns, but the breach raises serious questions about operational security and withdrawal controls. Investors will watch the recovery of stolen assets, the restoration of normal exchange services and broader market conditions. Until investigators establish the full extent of the breach and determine how much money can be recovered, uncertainty is likely to remain a significant obstacle for Bitcoin and other cryptocurrencies.