Why Didn’t Bitcoin Crash Harder After the Binance Hack? CZ Weighs In

CZ believes the headline $6.3 billion figure does not tell the full story. Given the extent of the hack that took place on Friday morning, bitcoin’s price expectedly dropped sharply, going south by $4,000 within hours. However, the asset avoided the kind of catastrophic collapse seen during some of the industry’s previous exchange failures and hits. Former Binance CEO Changpeng Zhao has now offered an explanation for why the damage to BTC may have been relatively limited. BTC Stands at $77K We are not trying to claim that BTC didn’t drop. It did. We reported that its price slumped from over $80,000 to $76,100 (later that day), losing over $4,000 of value in hours. Although that’s no small amount, a deeper look could actually show that it’s not as painful as it could or should have been. Binance said the incident resulted in the theft of approximately $6.3 billion worth of crypto assets from compromised hot wallets. Further updates informed that roughly $3 billion was frozen on-chain by the exchange and other partners, while Binance promised to cover the entire loss using its SAFU fund and corporate treasury. It also stressed that user balances would remain fully protected. The imme...