Bitcoin falls below $78,000 as Binance security breach triggers cryptocurrency selloff

Bitcoin remained under heavy selling pressure on Friday, October 30, as a major security breach at Binance unsettled cryptocurrency markets, triggering widespread liquidations and renewed concerns over the safety of assets held on centralized exchanges.

The world's largest cryptocurrency struggled to recover after touching its lowest level in six weeks, while Ethereum and other major tokens suffered substantial losses.

Price overview

Bitcoin traded near $77,377, down 4.37%, at approximately 17:05 GMT, while fluctuating between $76,518 and $81,210 during the session.

Ethereum traded around $2,248, down approximately 3.3%, while Solana remained near $101 after coming under pressure alongside other major cryptocurrencies.

Binance breach shakes investor confidence

Binance disclosed a security incident affecting approximately $6.3 billion in digital assets, with preliminary investigations pointing to unauthorized withdrawals following the compromise of an employee's computer.

The exchange said approximately $3 billion in affected assets had been frozen and temporarily suspended withdrawals while conducting security checks.

The incident raised concerns about exchange liquidity and the potential consequences for customers unable to access their holdings.

Liquidations accelerate

Cryptocurrency futures liquidations surged to approximately $1.57 billion as leveraged traders were forced to close positions.

Trading volumes increased sharply, while declining open interest indicated that investors were reducing exposure rather than rebuilding positions following the selloff.

BNB, Binance's native token, suffered particularly heavy losses.

Institutional demand offers limited relief

US spot Bitcoin exchange-traded funds recorded approximately $17 million in net inflows on Thursday, their fourth consecutive session of positive flows.

However, the inflows provided little protection against the broader market decline.

Market outlook

Bitcoin faces immediate support around $76,500, followed by $75,000, while resistance stands near $78,000.

The market's direction will depend heavily on Binance's ability to restore normal operations and clarify the extent of its losses.