Have Bitcoin and the Crypto Market Become More Resilient to Hacking Attacks?
Despite the unprecedented hack of Binance and the theft of $6.3 billion in assets, the price of Bitcoin has not experienced a severe drop as expected, remaining around $78,000. The swift response of the exchange and its commitment to compensate all losses are among the key reasons analysts cite for the market's resilience.
According to Mihan Blockchain, Bitcoin has dropped about 5% from its peak price on Thursday, but the market's behavior differs significantly from its reaction to the collapse of the FTX exchange in 2022. However, the increased demand for hedging instruments indicates that traders are still concerned about the possibility of further price declines and the recurrence of security attacks.
Bitcoin's Reaction to the Binance Hack Differs from the FTX Collapse
Caroline Mauron, co-founder of Orbit Markets, believes that Bitcoin's relative stability in the days following the attack reflects the market's confidence in Binance's financial capacity to cover losses. She stated:
Bitcoin's resilience over the weekend was essentially a vote of confidence in Binance's statements. The market clearly believes that this exchange has sufficient resources to cover the losses.
This reaction contrasts with what occurred during the FTX bankruptcy. In November 2022, Bitcoin fell about 19% within three days; however, this time, despite the magnitude of the theft, the market has shown a more limited reaction.
Bitcoin price recovery after the hacking attack on Binance
Sean McNulty, a derivatives trader at AQC Tech, also attributes one reason for this difference to Binance's purchase of Bitcoin to compensate users. However, he believes that concerns about the security of exchanges remain serious.
McNulty said:
Many see this attack as just the tip of the iceberg and expect more attacks to occur given the capabilities of artificial intelligence. If the world's largest exchange is hacked, no one is safe.
Increased Demand for Protection Against Bitcoin Decline
Despite the relative price stability, traders in the options market are seeking more protection against a potential decline in Bitcoin. Data from the Deribit derivatives platform shows that the 25-Delta Put Skew index for one-day put options has increased by about one percentage point over the past 24 hours, reaching 6.37. This index indicates that traders are willing to pay more for put options and hedging against price declines compared to similar call options.
Kelly Ye, head of research at Talos, believes that the market has perceived the attack on Binance this time as an operational shock rather than a widespread crisis for the entire industry. According to her, the depth of buy and sell orders on Binance decreased by about 25 to 30% after the attack, but buyers returned to the market within a few hours.
She sees this situation as different from 2022, when traders' confidence in the entire crypto market was lost.
U.S. Elections and Market Security Concerns
Alongside the Binance hack, the U.S. midterm elections could also impact the short-term market trends. Jeff Ko, a senior analyst at ViaBTC, states that changes in the party composition of Congress could affect the process of passing laws related to the structure of the cryptocurrency market.
On the other hand, the history of major attacks shows that the market's initial reaction does not necessarily reflect all the consequences of a theft. Before the recent attack, the $1.5 billion theft from the Bybit exchange in 2025 was the largest hack recorded in the crypto industry. Interestingly, according to findings, the FBI has linked both attacks to the TraderTraitor hacking group associated with North Korea.
Dissection of the Bybit Exchange Hack; How Did It Happen?
Bitcoin also had a limited reaction in the early days following the Bybit attack but ultimately fell about 14% over the course of a week. Ye, referring to this experience, states:
For investment institutions, the lesson is clear: No exchange is a safe place to hold assets or a reliable basis for price evaluation.
-- Price
This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.
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