Over $1.50 billion in crypto liquidations; Binance freezes $3 billion following hack

• Nearly $6 billion has flowed out following a suspected hack of Binance wallets on the Bitcoin, Ethereum, and Tron networks.
• Over $1.50 billion has been wiped out in the past 24 hours, according to CoinGlass, as sentiment across the market shifts to bearish.
• Below $77,000 on Friday, Bitcoin extends Thursday’s 4% drop and is on course for a bearish October close, with losses of about 8%.

Over $1.50 billion in derivatives positions have been liquidated in the past 24 hours. Bitcoin has fallen below $77,000, while the wider cryptocurrency market trades lower on Friday following reports of a hack of Binance wallets. The potential theft involves $1.45 billion in Bitcoin (BTC) and $875 million in Ethereum (ETH), and could rank as the largest crypto hack in history.

Binance faces potentially record crypto hack

A potential breach of Binance's hot wallet was flagged by former Binance CEO Changpeng Zhao, among the first to report it. 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 support from leading US Dollar-pegged stablecoin issuers Tether and Circle, Binance has frozen $3 billion in crypto assets, the exchange announced in a recent X post. Separate posts on X from Tether CEO Paolo Ardoino and Circle Co-founder Jeremy Allaire disclosed freezes of $1.567 billion in USDT and $800 million in USDC. 

In every social media update, Binance has reiterated that user funds remain safe. Its internal teams are continuing to collaborate closely with law enforcement, issuers, blockchain intelligence firms, and industry partners to track and freeze further assets. 

$77,000 breached as Bitcoin decline drives over $1.50 billion in crypto liquidations

Investors rapidly circulated reports that Binance, the largest crypto Centralized Exchange (CEX) by trading volume, had suffered a hack involving over $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. Over the past 24 hours, total liquidations reached $1.51 billion, according to CoinGlass. Long liquidations accounted for $1.30 billion, underscoring the near-term panic selling.

$75,000 in focus: Bitcoin's technical correction outlook

At around $76,676 at press time on Friday, Bitcoin remains below its 50-day Exponential Moving Average (EMA) of $80,556, maintaining a bearish near-term bias. It is holding just above the 200-day EMA at $76,457. Trapped between long-term support and nearby overhead supply, the price configuration indicates that the broader uptrend is technically intact, but under pressure.

At 32, the Relative Strength Index (RSI) is close to oversold territory, suggesting selling may be exhausted. However, the Moving Average Convergence Divergence (MACD) is still deeply negative, supporting the view that downside risks remain.

The 200-day EMA near $76,457 offers immediate downside support, with the horizontal floor at $75,545 next in line. Should Bitcoin close a day below this support cluster, the next bearish target would be the deeper $70,000 level.

A recovery would first encounter the 50-day EMA at $80,556, followed by horizontal resistance at $81,272. To soften the prevailing bearish tone and open a route back towards recent highs, a stronger rebound would have to overcome $87,395.

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