Fitch Ratings has evaluated the activity in the Bitcoin market following the major cyberattack on Binance. The agency reported that the fact that the price decline remained limited compared to past major shocks indicates that the trading infrastructure in the crypto market has become deeper and more diversified.
In its statement, Fitch recalled that approximately 6.3 billion dollars worth of digital assets were stolen from Binance in the attack that began on October 29. It was noted that this incident could be the largest cryptocurrency theft to date.
It was recorded that Binance temporarily suspended trading and withdrawal operations following the attack, and that withdrawal services were resumed on November 1.
Fitch emphasized that the event served as an important test for measuring the liquidity of the Bitcoin market in the face of crypto-specific shocks. According to the statement, while Bitcoin fell by approximately 6 percent within 10 hours following the initial news of the attack, daily trading volume increased by 67 percent.
The agency stated that, despite this, the price movement remained low compared to previous major market shocks, assessing that, "We believe this low level of disruption stems from the fact that crypto trading market structures have become deeper and more diversified."
The statement expressed that the diversification in market structure has reduced dependence on a single exchange; market liquidity was supported despite the disruption experienced at Binance, which is the largest crypto asset trading platform in terms of volume.
Fitch also reported that this development alone does not change its analytical view on Bitcoin-backed securities. The agency stated that if supported by final price, volume, and market depth analyses, this limited reaction could contribute to evidence that the Bitcoin market infrastructure is becoming more resilient as it matures.
News Source: 12punto
