Bitcoin steadies near US$78,000 as crypto market rebuilds after Binance hack

On Monday morning, Bitcoin was trading at approximately US$78,076 as the cryptocurrency market showed signs of stabilization after a tumultuous sell-off last week, which included a significant US$6.3 billion security breach at Binance.

Other cryptocurrencies also reflected this stabilization, with Ethereum priced around US$2,268, BNB close to US$709, XRP at US$1.25, Solana at approximately US$94, and Dogecoin near US$0.075.

The total valuation of the global cryptocurrency market was estimated at about US$2.68 trillion, with Bitcoin representing roughly 58% of the overall market capitalization.

Positive sentiment in the market was bolstered by Binance's announcement that it had begun to gradually restore withdrawals on November 1, following necessary security checks. The exchange confirmed that withdrawals were being reactivated across major networks, including Bitcoin, Ethereum, Solana, XRP, and BNB. Additionally, Binance reported that it had successfully replenished around 95% of the assets impacted by the breach, assuring that major holdings such as BTC, ETH, USDT, BNB, SOL, and XRP were fully backed.

This recovery came after a volatile period at the end of the previous week, during which Bitcoin's price briefly fell to around US$76,400, leading to the liquidation of approximately US$1.5 billion in leveraged crypto positions.

However, the rebound has been tempered by ongoing challenges related to institutional flows. On October 30, US spot Bitcoin exchange-traded funds (ETFs) experienced net outflows totaling US$643.2 million, reversing the inflow trend seen earlier in the week. Ethereum ETFs also faced withdrawals amounting to US$155.7 million on the same day, continuing a streak of weak inflows for the second-largest cryptocurrency.

This selling pressure has limited the strength of the market's recovery, despite the resumption of withdrawals by Binance. Meanwhile, major altcoins have also shown signs of stabilization but remain significantly below their values from earlier in October. Solana is still trading below the US$100 mark, while Ethereum struggles to maintain momentum above US$2,250. BNB has seen some recovery, approaching US$710, but Binance remains a focal point of market attention, with XRP and Dogecoin exhibiting relatively minimal movement.

Looking ahead, Bitcoin's immediate challenge will be to reclaim and sustain a position above US$80,000, having found support around the US$76,000 to US$77,000 range. The direction of the market in the near term is likely to be influenced by ETF flows, Binance's continued recovery efforts, and the overall risk appetite of investors, as traders remain cautious in the wake of last week's leveraged sell-off.