Bitcoin slipped below $77,000 on Tuesday as cryptocurrency markets remained under pressure following the record $6.3 billion Binance hack, another wave of leveraged liquidations and significant withdrawals from US Bitcoin exchange-traded funds.
The world’s largest cryptocurrency was trading around $76,746, down almost 2% over 24 hours, as investors continued assessing the consequences of the cyberattack and wider uncertainty across risk assets.
Ethereum traded near $2,250, while Binance’s BNB token weakened towards $700. XRP remained relatively stable, although Solana experienced sharper losses as selling pressure extended across the digital asset market.
Investor sentiment remained subdued following the 29 October attack on Binance, which resulted in approximately $6.3 billion in cryptocurrency being stolen, making it the largest reported cryptocurrency theft on record.
The FBI has attributed the attack to North Korea’s TraderTraitor hacking group, adding to concerns about the growing sophistication of state-linked cybercriminal operations targeting major digital asset platforms.
Binance has since resumed customer withdrawals and says it has replaced or covered approximately 95% of the stolen assets, although investigators continue working to trace and recover funds.
The reopening triggered substantial customer activity, with approximately $4.65 billion withdrawn during the initial period, compared with deposits of around $1.01 billion.
The figures indicate considerable pressure on customer confidence, although withdrawals alone do not establish that the exchange is facing a liquidity crisis.
Blockchain investigators believe billions of dollars in stolen cryptocurrency remain under the attackers’ control, distributed across hundreds of wallets.
The security incident has also been accompanied by significant leveraged trading losses, adding further pressure to cryptocurrency prices.
Around $298 million in cryptocurrency positions were liquidated over a 12-hour period, including approximately $271 million in long positions.
Bitcoin accounted for roughly $68 million of the liquidations, while Ethereum represented more than $40 million.
The concentration of losses among traders betting on rising prices suggests that attempts to position for a market recovery were disrupted by renewed selling.
Forced liquidations can intensify short-term volatility as leveraged positions are automatically closed when prices move against traders.
Institutional investment flows have also weakened, with US spot Bitcoin exchange-traded funds recording approximately $643 million in net outflows on Friday.
The withdrawals represented their largest daily outflow since June, reversing several days of earlier investment inflows and adding to concerns about demand for cryptocurrency exposure.
Ethereum has also struggled to regain momentum, remaining more than 16% lower over the past month, despite comparatively smaller movements during the latest trading session.
Security concerns have widened following reports of a separate breach at Brazilian cryptocurrency exchange Mercado Bitcoin.
The platform reportedly suspended deposits and withdrawals after more than $40 million in digital assets was drained from wallets across multiple blockchains.
The additional incident has reinforced investor concerns about the security of cryptocurrency custody arrangements and the potential consequences of further exchange compromises.
Bitcoin’s immediate price direction is now attracting particular attention around the $76,000 to $77,000 region, which traders are monitoring as a potential support area.
A sustained move below this range could encourage further selling, particularly if additional leveraged positions are forced to close.
Conversely, a recovery towards $78,000 to $80,000 could indicate that selling pressure is easing, although these technical levels do not guarantee a change in market direction.
For investors, the combination of exchange security concerns, institutional fund withdrawals and leveraged liquidations has created a challenging environment for cryptocurrencies.
While Binance has committed substantial financial resources to protecting affected customers, the longer-term implications for exchange security, regulatory oversight and investor confidence remain uncertain.
Attention will now turn to Bitcoin’s ability to stabilise around $76,000, developments in the Binance investigation and the direction of institutional ETF flows, as cryptocurrency markets seek to recover from one of the most significant security incidents in the industry’s history.
