Bitcoin (BTC) Completely Recovers Losses Within 24 Hours Following Binance Hack
It would seem that Bitcoin is becoming more resilient to negative news regarding security flaws. The value of Bitcoin has almost completely recovered following the revelation this morning that 7,000 BTC (worth $40 million) had been stolen from popular cryptocurrency exchange Binance.
In fact, the value of the overall cryptocurrency market was barely affected by the news, with Bitcoin dropping by less than 4 percent. As news broke, the price plummeted in a matter of minutes from $5,933.34 to $5,745.36, but then almost immediately starting climbing again. Now, within 24 hours, it has almost completely recovered all its losses.
Previous hacks have seen the cryptocurrency market suffer drastic damage, with prices dropping by as much as 30 percent within hours. In June last year when South Korean exchange Coinrail incurred losses of $36 million following a hack, Bitcoin immediately dropped by over 10 percent, losing over $500 in value.
Earlier that same year, Japanese exchange Coincheck suffered a far more devastating hack, losing $530 million worth of NEM tokens in a hack in January. Following the hack, the price of NEM lost over 20 percent of its value. While Bitcoin and other top ten cryptocurrencies weren’t badly affected in the hack, it still had a significant effect on the overall crypto market.
A dent in an otherwise perfect record
Binance has long been lauded as a beacon of hope amongst cryptocurrency exchanges due to its long history of never being subject to any hacks or thefts. In December last year, hackers attempted to steal Binance account details using phishing emails and a fake website but Binance was quick to freeze withdrawals and remedy the situation.
Following today’s hack, Binance CEO Changpeng Zhao (CZ) announced that the exchange will be freezing all deposits and withdrawals while they conduct a security review. Normal trading, however, can continue on the platform. Binance will personally cover all losses using savings from a Binance insurance fund jokingly named the “SAFU” fund after a meme video created by Bizonacci entitled Funds Are Safu.
Bitcoin is currently trading just below $6,000 with many analysts speculating that the asset will cross the significant milestone in the near future.