SEOUL — Bitcoin extended its downward slide for a second consecutive day, weighed down by the fallout from a historic hacking incident at Binance—the world’s largest cryptocurrency exchange—alongside a sharp retreat in U.S. tech stocks and surging global oil prices.

According to CoinMarketCap, Bitcoin was trading at $77,224 as of 9:00 a.m. KST on October 31, down 0.63% over the previous 24 hours. The leading cryptocurrency briefly tumbled into the $76,000 range overnight.

Other major digital assets showed mixed performances. Ethereum edged down 0.28%, while XRP (1.60%) and Solana (0.85%) posted marginal gains. Meanwhile, altcoins like Tron suffered steeper declines, plunging 7.09%.

Market sentiment has deteriorated significantly. CoinMarketCap’s “Crypto Fear & Greed Index” fell to 35 (Fear) on Friday, down from 38 (Fear) the previous day, 47 (Neutral) last week, and 67 (Greed) last month. In South Korea, Upbit's total market capitalization stood at approximately 3.25 trillion won, marking a 0.81% decrease over a 24-hour period. Both Bitcoin and Tether maintained a "Kimchi Premium" at 1.14% and 1.08%, respectively.

Record $6.3 Billion Binance Hack Shakes the Market

The primary catalyst behind the crypto market downturn is an unprecedented security breach at Binance. On October 29, hackers made off with roughly $6.3 billion (approx. 8.4 trillion won) in digital assets in what marks the largest single-crypto heist in history.

According to Reuters and blockchain analytics firms TRM Labs and Chainalysis, North Korea-linked hackers executed the theft in a mere 20 minutes.

The attackers reportedly compromised the laptops of Binance development and operations engineers, bypassing standard approval protocols to secure signing permissions. Leveraging these privileges, the hackers began draining assets from 10 Binance blockchain wallets starting at 4:05 p.m. U.S. Eastern Time on October 29 (5:05 a.m. KST on October 30). Bitcoin prices began their descent immediately following the breach.

Shortly after seizing stablecoins and other digital assets, the perpetrators swiftly converted approximately $325 million into 122,300 Ethereum tokens. Although stablecoin issuers Tether and Circle attempted to freeze the funds, the hackers had already converted a substantial portion into unfreezable assets. Forensics left behind clues pointing to "TraderTraitor," an elite North Korean state-sponsored hacking collective.

When asked by reporters at the White House on October 30 whether the attack originated from North Korean hackers, U.S. President Donald Trump responded, "We don't know," adding that officials are "looking at it." The Federal Bureau of Investigation (FBI) and the U.S. Secret Service (USSS) have launched formal investigations.

A confirmed North Korean link could cast a shadow over prospects for renewed U.S.-North Korea dialogue. President Trump had previously hinted at a potential meeting with North Korean leader Kim Jong Un on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in China this November.

Addressing the crisis, Binance founder Changpeng Zhao (CZ) reassured investors, stating, "As a shareholder, I believe all user funds will be fully covered," and emphasizing that user assets remain secure. Binance plans to mobilize its $1 billion Secure Asset Fund for Users (SAFU), $6.34 billion in company-held reserves, and $1 billion of CZ’s personal SpaceX stock holdings to cover the losses. The exchange stated it aims to resume digital asset withdrawal services within roughly 34 hours of the temporary suspension.

Wall Street Tech Rout and Spiking Oil Prices Compound Pressures

Compounding crypto market anxieties, Wall Street experienced a broad sell-off on October 30 (local time) as disappointing earnings reports from tech giants spooked investors.

Following weaker-than-expected guidance from Google parent Alphabet, both Amazon and Intel reported underwhelming results, reigniting investor concerns over heavy artificial intelligence (AI) infrastructure spending. The tech-heavy Nasdaq Composite tumbled 747.73 points (2.86%) to close at 25,437.00, fueling a flight from risk assets.

Meanwhile, international crude oil prices climbed aggressively. December Brent futures rose 2.40% to settle at $117.64 per barrel—reaching their highest level since April 29—while West Texas Intermediate (WTI) for December delivery gained 2.08% to $104.12 per barrel, peaking for the first time since September 15. The surge was driven by escalating fears of a wider Middle East conflict involving Iran and potential disruptions to oil transit through the Strait of Homuz. Growing inflationary pressures from soaring energy costs have raised market expectations for a potential Federal Reserve interest rate hike in December.

Market Outlook: Capitulation Bottom or Institutional Exodus?

Industry analysts are divided on how the dual shocks will shape the future trajectory of digital assets.

Some market participants view the Binance crisis as a potential market bottom indicator. Crypto trader Killa wrote on X (formerly Twitter), "Just like the FTX collapse marked the bottom for the market, the Binance hack will likely serve the same role."

Will Tamplin, a senior analyst at Fairlead Strategies, told Bloomberg that Bitcoin could experience additional downside over the next few days as it absorbs the shockwaves, suggesting that "this week could present an opportunity to increase investment exposure."

Conversely, Matt Maley, chief market strategist at Miller Tabak, warned Bloomberg of longer-term institutional risks: "The scenario that raises the biggest concern is that this hack could cause institutional investors to take a step back from cryptocurrencies. If they harbor concerns over operational security or counterparty risk, they are likely to scale back their allocations."

[ⓒ Global Economic Times. 무단전재-재배포 금지]