Binance Outflows Fall to $458 Million as Analysts See Limited Hack Fallout

Binance's net outflows were $458 million over a 24-hour period measured on Nov. 9, while analysts saw limited broader market fallout from the Oct. 29 breach.

The latest outflow figure was down from $6.1 billion on Nov. 2, after withdrawals resumed. The Nov. 9 figure covers a rolling 24-hour period, not a calendar day.

Binance estimated the breach's total impact at about $6.3 billion and said it would cover user losses with its Secure Asset Fund for Users (SAFU) and company funds. In its Oct. 30 update, the exchange said about $3 billion had been frozen on-chain. The estimate of total impact does not establish the final net loss. Binance's earlier breakdown of the breach's estimated impact includes the frozen-funds figure.

Martin Lee, market insights lead at DWF Labs, said Binance's ability to cover losses with its balance sheet helped limit the fallout. Lee said investors had shifted their focus to the implications of the U.S. midterm elections.

Bitcoin (BTC) fell as much as 5.7% in the first five days after the breach. At 8:21 a.m. ET on Nov. 9, Bitcoin traded at $74,580, down 2.5% over the previous 24 hours.

Lacie Zhang, research lead at Bitget Wallet, said past exchange hacks had led to temporary price declines that markets later absorbed as long-term-holder demand returned. Zhang said the Binance breach did not mark a structural trend reversal for crypto markets.

The Consumer Price Index reading due Nov. 10 was another market focus. Bitfinex analysts said the reading would inform the Federal Reserve's next rate decision.