Binance freezes $3 billion after hack as crypto liquidations exceed $1.50 billion

• Nearly $6 billion in outflows follow a suspected hack affecting Binance wallets on the Bitcoin, Ethereum, and Tron networks.
• Bearish sentiment grips the wider market as CoinGlass records more than $1.50 billion wiped out over the past 24 hours.
• A bearish October close looms for Bitcoin, with losses of about 8%, as it falls below $77,000 on Friday after Thursday’s 4% drop.

Losses across the cryptocurrency market deepen on Friday as reports of a hack at Binance raise the prospect of the largest crypto theft in history. The potential theft involves $1.45 billion in Bitcoin (BTC) and $875 million in Ethereum (ETH) from Binance wallets. With Bitcoin falling below $77,000, total liquidations in the derivatives market have exceeded $1.50 billion over the past 24 hours.

Could Binance Face the Largest Crypto Hack in History?

A possible breach of Binance's hot wallet was flagged early by Changpeng Zhao, the exchange's former CEO. Wallets on the Bitcoin, Ethereum, and Tron (TRX) networks are affected by the suspected hack, leaving $1.45 billion in BTC, $875 million in ETH, and other crypto assets at risk.

With assistance from Tether and Circle, leading issuers of US Dollar-pegged stablecoins, Binance said in a recent X post that $3 billion in crypto assets had been frozen. Separate posts on X by Tether CEO Paolo Ardoino and Circle Co-founder Jeremy Allaire disclosed freezes of $1.567 billion in USDT and $800 million in USDC. 

Each social media update from Binance reiterates that user funds remain safe. Its internal teams are continuing to coordinate closely with law enforcement, issuers, blockchain intelligence firms, and industry partners to track and freeze further assets. 

Why Have Crypto Liquidations Exceeded $1.50 Billion as Bitcoin Falls Below $77,000?

Investors rushed to sell as reports spread rapidly that Binance, the largest crypto Centralized Exchange (CEX) by trading volume, had suffered a hack exceeding $3 billion. The resulting panic selling drove Bitcoin below $77,000 on Friday, adding to the previous day's 4% fall.

More than $1.50 billion in leveraged market positions were also wiped out during the sell-off. Of the $1.51 billion in total liquidations recorded by CoinGlass over the past 24 hours, long positions accounted for $1.30 billion, underscoring the near-term panic selling.

Technical Outlook: Could Bitcoin’s Correction Take It Below $75,000?

Near-term sentiment towards Bitcoin remains bearish at press time on Friday, with the price around $76,676. It is trading below the 50-day Exponential Moving Average (EMA) of $80,556 but narrowly above the 200-day EMA of $76,457. Positioned between long-term support and nearby overhead supply, Bitcoin retains a technically intact broader uptrend, although that trend is under pressure.

Downside risks remain evident in the deeply negative Moving Average Convergence Divergence (MACD). However, the Relative Strength Index (RSI), at 32 and close to oversold territory, suggests that selling may be approaching exhaustion.

The first support on the downside lies near $76,457 at the 200-day EMA, with the horizontal floor of $75,545 below it. Should the price close below this support cluster on a daily basis, $70,000 would become the next downside target.

Any rebound would first face resistance at the 50-day EMA of $80,556, followed by the horizontal barrier of $81,272. To temper the prevailing bearish sentiment and restore scope for a move towards recent highs, a stronger recovery would have to surpass $87,395.

(The technical analysis of this story was written with the help of an AI tool. Know more.)