Bitcoin Nears $79,000 as Markets Shake Off Crypto's Largest Exchange Hack
Key Takeaways
- •Bitcoin gained about 1% to around $78,600 in Monday's Asian session, its third consecutive day of advances, after recovering from a Sunday dip below $77,600.
- •Binance's recently disclosed $6.3 billion hack, the largest theft from a crypto exchange on record, had pushed prices lower before markets steadied.
- •Broader markets rebounded alongside crypto, with S&P 500 and Nasdaq 100 futures up at least 0.4% and Asian equity benchmarks mostly higher, following the Nasdaq 100's 3.5% Friday slide.
- •Brent crude fell 3% to about $110 a barrel on a report that President Trump will give diplomacy with Iran more time, while gold rose roughly 1% to near $3,910 an ounce.
- •BTSE's chief operating officer said elevated Fed-driven interest rates may weigh on crypto liquidity in coming months, while this week's U.S. midterms and the CLARITY Act could shape regulation and market conditions.
Bitcoin climbed about 1% to roughly $78,600 during Monday's Asian morning session, its third consecutive day of gains, as investors across the region returned to risk assets after Friday's rout in U.S. technology shares.
ZEC led the major tokens, advancing 3% to nearly $1,280. Ether and $BNB each added close to 2%, with ether trading just above $2,300 and $BNB at approximately $713, while XRP and TRX rose about 1%. SOL lagged the group, barely moving at around $95, according to CoinDesk data.
The steadier start to the week follows Binance's disclosure last week of a $6.3 billion hack, the largest theft from a crypto exchange on record, which knocked prices lower. Bitcoin dipped to about $77,600 late Sunday before buyers pushed it back above $78,500 within hours.
Recovery spreads beyond crypto
Broader markets are also rebounding. The Nasdaq 100 slumped 3.5% on Friday, its worst day since June, and the Philadelphia Semiconductor Index, which tracks U.S.-listed chipmakers, plunged 7%. On Monday, futures tied to the S&P 500 and Nasdaq 100 climbed at least 0.4%.
Equity benchmarks rose in South Korea, Hong Kong and Japan, and Chinese stocks advanced after a report said regulators will meet banks and brokerages on Monday to discuss ways to support the market. The outcome of that meeting is one of this week's regional watch items for markets.
In commodities, Brent crude fell 3% to about $110 a barrel after a report said President Donald Trump wants to give diplomacy with Iran more time before potentially resuming strikes following Tuesday's midterms. Gold rose about 1% to roughly $3,910 an ounce, bouncing from its lowest close in more than a year, reached on Friday.
Rates, tech and midterms in focus
"We believe that given last week's Fed commentary, macro pressures will continue to keep interest rates high, which will weigh on liquidity for Bitcoin and other cryptocurrencies over the next few months," Jeff Mei, chief operating officer at crypto exchange BTSE, said in an email to CoinDesk.
"This week we'll be watching closely to see if tech stocks will rebound or continue their decline from last week. A small rebound may indicate that we've already hit the bottom and could present a potential buying opportunity for Bitcoin, which is trading below the $80k mark," Mei said.
Political developments could also shape trading. The CLARITY Act is the bill that would set rules for how crypto markets are regulated in the U.S., including which agency oversees which tokens. Polls close across the U.S. on Tuesday night, meaning results will start landing during Wednesday's Asian trading hours.
"Additionally, US midterm elections this week are likely to have a major impact on markets. While the Democrats are against the CLARITY act, their party winning a majority in Congress could force the Iran conflict to an earlier end, lowering oil prices and inflationary pressures, causing stocks and crypto to rebound," Mei added.
