Bitcoin price has fallen below USD 77,000 after a USD 6.3 billion security breach at Binance added to selling pressure across the cryptocurrency market.
Bitcoin fell to USD 76,300 on Friday before recovering to around USD 77,244, down 1.58% over 24 hours. The decline followed a week of weakness in U.S. technology stocks, while widespread crypto liquidations added to the losses.
Bitcoin fell to its lowest level since September 18 as traders reacted to the Binance security breach. The exchange confirmed that attackers had stolen about USD 6.3 billion in crypto assets, prompting a temporary suspension of withdrawals.
According to reports, crypto liquidations reached USD 1.57 billion after the attack. Bitcoin accounted for around USD 522 million, while Ether recorded USD 361 million. Traders holding leveraged bullish positions suffered most of the losses.
Meanwhile, Binance's BNB token fell toward USD 700 as other major cryptocurrencies declined. Selling also affected tokens linked to the stolen assets as attackers exchanged some holdings for cryptocurrencies that issuers could not freeze.
The market had already struggled to hold Bitcoin above USD 80,000 earlier in the week. The breach added pressure as traders reduced exposure to cryptocurrencies.
Binance confirmed that it had reserved more than USD 6.34 billion in company funds to cover the theft. The exchange said it already held USD 5 billion in matching crypto assets and was purchasing the remaining tokens.
The company also reported that around USD 3 billion of the stolen funds had been frozen onchain. Tether and Circle helped block transfers involving stolen stablecoins, although frozen assets have not necessarily been recovered.
However, investigators are still examining how attackers gained access to Binance's systems. The exchange initially identified a compromised employee laptop as a possible entry point but later reported finding additional areas of compromise.
Binance said it had found "no evidence" that wallet private keys were leaked. Separately, blockchain investigators at Elliptic described North Korean involvement as "likely," although authorities have not publicly confirmed the attackers' identities.
The exchange plans to resume withdrawals in phases after completing security checks.
Beyond the Binance hack, Bitcoin faced pressure from falling U.S. stocks. The Nasdaq Composite dropped more than 3% during Friday's trading, while the S&P 500 declined over 2%.
Technology shares weakened after earnings reports and forecasts from Amazon and Intel raised concerns about artificial intelligence spending. Gold also fell, trading as low as USD 3,891 per ounce during the wider market sell-off.
Meanwhile, Bitcoin was heading toward its weakest October performance since 2014. At USD 77,000, the cryptocurrency faced a monthly loss of around 7.7%, according to CoinGlass data.
Attention has also turned to Bitcoin's next price levels. Immediate support sits near USD 76,600, while USD 79,107 remains a nearby resistance level. A break below support could bring the 200-day moving average near USD 73,107 into focus.
For now, traders are monitoring Bitcoin's price recovery, Binance's withdrawal services and developments in the investigation into the stolen funds.
ALSO READ: Nasdaq Futures Plunge as Amazon, Intel Stocks Tumble After Earnings