Fitch Ratings stated that Bitcoin's response to the Binance attack was relatively limited compared to past crises.
In the last week of October, Binance, the world’s largest cryptocurrency exchange, suffered a $6.3 billion hack.
The market experienced a downturn following this attack, and the price of Bitcoin also declined. However, the drop in BTC price was more limited compared to previous incidents.
While this development is viewed positively by analysts and leading organizations, a recent assessment came from the international credit rating agency Fitch Ratings.
Bitcoin’s Reaction Remained More Limited Than in Past Crises!
Fitch Ratings stated that approximately $6.3 billion worth of digital assets were stolen in the Binance attack in October, which may be the largest cryptocurrency theft to date.
According to Fitch Ratings, despite Binance temporarily suspending withdrawals and trading and the magnitude of the attack, Bitcoin’s market reaction to the Binance attack was relatively limited compared to past crises. Bitcoin only dropped about 6% in the 10 hours after the news first broke.
Comparing it to other major historical crises, Fitch recalled that Bitcoin dropped 35% in a single day in March 2020 at the start of the COVID-19 pandemic; 14% during the 2022 FTX crash; and 21% during the 2015 Bitstamp attack.
At this point, Fitch noted that the limited decline in Bitcoin following the Binance attack indicated a more resilient crypto market. Fitch also added that the expansion and diversification of the Bitcoin and cryptocurrency trading market reduced reliance on a single exchange.
Fitch stated that the recent Binance hack is not significant enough to unilaterally alter its previous analytical assessments of Bitcoin-backed securities.
The institution emphasized that if data on price movements, trading volume, and market depth also confirm this picture, the limited losses observed after the attack could be an important sign that the Bitcoin market has become more resilient in terms of liquidity and infrastructure as it matures.
*This is not investment advice.
