Binance Hack Sparks Mass Liquidations, Bitcoin ETF Outflows, and a Red October

A major security breach at Binance rattled global crypto markets on October 30, sending Bitcoin below $77,000 and triggering one of the heaviest liquidation events of the year. Bitcoin fell 4.51% to roughly $76,847, underperforming a broadly weaker market as the breach eroded trader confidence and sparked a cascade of forced selling. Analysts noted the incident led to roughly $1.54 billion in total crypto liquidations, with long positions accounting for 76% of the damage.

The fallout extended quickly into spot Bitcoin ETF markets. Investors pulled $643.33 million from US spot Bitcoin ETFs on October 30 alone, according to SoSoValue data cited by BeInCrypto. BlackRock's iShares Bitcoin Trust, the largest of the funds, bore the steepest losses at roughly $234 million, erasing much of the momentum built during three consecutive inflow sessions from October 26 to 28 that had totaled approximately $423.6 million.

Bitcoin on Track for a Rare Second Straight Losing October

The ETF exodus pushed Bitcoin toward its second consecutive red October, a streak that has occurred only once before in the asset's history. Thirty-day net ETF flows remained negative heading into Halloween, meaning institutional demand has not yet offset the month's cumulative outflows despite brief periods of recovery. The Fear and Greed Index sat at 50 as of October 30, down 17 points over the prior week, reflecting a market caught between caution and residual bullish sentiment.

On the regulatory front, Treasury Secretary Scott Bessent proposed closer cooperation among federal agencies on October 27, stepping into the vacuum left by the CLARITY Act's failure on a 49-50 Senate procedural vote in September. Speaking at Ripple's Swell conference in New York, Bessent outlined a joint role for Treasury, the SEC, and the CFTC in filling the legislative gap, while also raising concerns about crypto businesses losing access to traditional banking services. The proposal signals that US crypto rulemaking will advance through agency action rather than legislation heading into year-end, with the CFTC's Regulation CTX and Regulation CAM comment period open until December 14 and the SEC's custody proposal deadline set for December 7.