bitcoin ·
Binance $6.4 billion hack sees Bitcoin fall 3% versus 2018's 11% drop
Following the record $6.4 billion hack at Binance, Bitcoin experienced a decline of approximately 3%. This contrasts sharply with the nearly 11% drop seen in 2018 during a previous exchange attack.
Binance has stated it has reserved more than $6.34 billion to cover the losses. Furthermore, about $3 billion remains frozen, and the exchange anticipates that withdrawals will resume within 45 hours.
The theft, which began at 4:05 p.m. ET Thursday after U.S. markets closed, was confirmed by Binance. Analysis from Chainalysis and TRM Labs estimates the stolen amount at roughly $6.4 billion, exceeding the previous record of the $1.5 billion Bybit heist in February 2025 by more than four times.
In March 2018, a phishing and theft attempt on the same exchange caused Bitcoin to fall from $10,740 to $9,690 in minutes. At that time, Binance reported that no funds had been stolen.
The current market environment differs significantly from 2018. The total crypto market value has grown from just over $400 billion in March 2018 to approximately $2.6 trillion presently.
A major contributing factor to this evolution is the introduction of U.S. spot Bitcoin ETFs. Funds such as BlackRock’s iShares Bitcoin Trust now hold roughly 1.3 million BTC, representing about 6% of the total supply.
Institutional participants, including sovereign wealth funds like Mubadala and the Abu Dhabi Investment Council, are actively acquiring assets. BlackRock’s fund alone received $136 million on Wednesday, according to data from Farside Investors. These entities typically maintain holdings for extended periods and are less prone to sudden sell-offs.
The market's current resilience appears linked to several factors, including a more positive market outlook, increased liquidity, engagement from long-term investors, and the establishment of a clearer regulatory framework, which fosters a sense of security.
Why it matters
This event highlights how increased market liquidity and institutional adoption, such as via U.S. spot Bitcoin ETFs, may dampen the severe market reactions seen during past exchange hacks. Regulators and exchanges are under increased scrutiny to ensure robust security protocols amid growing market capitalization.
