Cryptocurrencies Slide as News of Major Hack Spooks Markets

By Fabiana Negrin Ochoa

Cryptocurrencies fell during the Asian morning session as news of a massive crypto hack reverberated across markets.

Bitcoin, Ethereum and Ripple each dropped more than 2% after Binance, the world's biggest crypto exchange, suspended transactions to investigate what could be the industry's largest-ever hack.

In a post on X, Binance said all deposits and withdrawals have been suspended while the company works with law enforcement and conducts security checks.

Changpeng Zhao, Binance's founder, said stablecoin providers Tether and Circle had moved quickly to freeze assets.

Binance said in a post on X that the estimated total impact stands at around $6.3 billion. It has worked with blockchain partners to freeze about $3 billion in assets so far.

"User funds are safe. Binance will cover all hacking losses," said co-founder Yi He on X.

Other industry players have rallied around Binance, moving to help secure assets.

Brian Armstrong, chief executive of rival exchange Coinbase, said his team was assisting with the response, including blocking transfers to compromised wallets.

"Coinbase is safe," Coinbase's Chief Technology Officer Rob Witoff said on X. "We're monitoring price volatility, tracking stolen funds onchain and remaining vigilant as ever."

The incident follows a recent security breach at crypto exchange BitGet, reviving fears about digital safety as more real-world assets move on-chain.

Crypto prices have been on a broad recovery trend as the "crypto winter" thaws, backed by institutional demand and regulatory tailwinds. However, the macro backdrop remains unfavorable, marked by volatile oil prices, elevated bond yields, and expectations of higher interest rates that weigh on risk sentiment and diminish crypto appeal.

Still, longer-term drivers such as the institutionalization of digital assets remain intact, suggesting that any price pullbacks could offer buying opportunities.

Bitcoin recently traded 2.9% lower at $76,573, its lowest level in over a month and below the $80,000 threshold viewed as a key indicator for bullish-bearish momentum. Ethereum was down over 3% at $2,186, while Ripple was 2.45% lower, according to LSEG data.

Write to Fabiana Negrin Ochoa at fabiana.negrinochoa@wsj.com

(END) Dow Jones Newswires

October 29, 2026 22:56 ET (02:56 GMT)