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UNIBitwise's Matt Hougan says Bitcoin will recover within a week of $6.3bn Binance hack
Wall Street brokerages told clients to buy the dip after the 30 Oct selloff, while Binance prepares to restore withdrawals in phases and publish proof-of-reserves results by 2 Nov.
Why it matters: The hack triggered a sharp selloff in crypto stocks and coins, so how Binance restores withdrawals and proves its reserves will shape whether analysts' buy-the-dip call holds.
Key points
- Bitwise CIO Matt Hougan expects Bitcoin's price to recover within a week of the $6.3bn Binance hack.
- TD Cowen, Cantor Fitzgerald and Compass Point called the 30 Oct crypto stock selloff a buying opportunity.
Bitwise chief investment officer Matt Hougan says Bitcoin will recover within a week of the $6.3bn Binance hack, playing down the breach as a short-term event. Bitcoin.com News reports that Wall Street analysts at TD Cowen, Cantor Fitzgerald and Compass Point also told clients the 30 Oct crypto stock selloff was a chance to buy.
Hougan said the hack had not altered Bitcoin's long-term direction, and told Reuters that hot wallet breaches, even large ones, have historically had little effect on future crypto returns. The selloff was real but limited: Bitcoin fell to a six-week low of $76,368 and ether to a two-month low of $2,178, before Bitcoin steadied near $77,000.
Brokerages buy the dip
TD Cowen's Lance Vitanza compared the episode to a bank robbery, arguing it exposed weaknesses in Binance's security rather than in Bitcoin's technology. Cantor Fitzgerald's Ramsey El-Assal said the firm would be buyers on weakness, adding that the situation was painful but not 2022, while Compass Point's Ed Engel and Michael Donovan said Binance has ample liquidity to cover the hole. Crypto stocks took the brunt, with Coinbase and Strategy each down about 12% on Friday and Robinhood about 9%.
Securitize CEO Carlos Domingo said the network itself was not hacked, only the centralised entity on top of it. Investor Scott Melker noted Bitcoin's modest fall alongside a sharp tech selloff. HashKey Group's Tim Sun was less relaxed, telling Reuters the breach may dampen risk appetite and prompt investors to reassess assets held on centralised exchanges.
What to watch: Binance aims to restart customer withdrawals in phases and has promised proof-of-reserves results by 2 Nov.
Live updates on NewsFeeds:BitcoinDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)
How this was produced: an AI model wrote this summary of Bitcoin.com News’s report, which we credit and link above. Read our Editorial and AI policy. Spotted a mistake? See Corrections.
Not investment advice. Read the risk disclaimer.