TL;DR
Bitcoin fell below $77,000 as the $6.3 billion Binance breach intensified a broader crypto selloff, before recovering from an overnight low near $76,400.
Crypto futures liquidations reached about $1.57 billion, with Bitcoin and Ether accounting for more than half, while falling open interest pointed to widespread position closures.
Options traders turned defensive as put demand increased, while analysts highlighted $73,000 as potential support if further selling develops from current levels.
Bitcoin fell below $77,000 as the $6.3 billion Binance security breach intensified an already broad crypto selloff , reaching an overnight low near $76,400 before partially recovering. A later market reading placed BTC near $77,405 , down about 3.2% over 24 hours. The move renewed pressure around Bitcoin market structure while separating the initial selloff snapshot from subsequent pricing remains essential.
Liquidations Amplify Bitcoin’s Drop as Traders Turn Defensive
Crypto derivatives experienced a sharp leverage flush as falling prices forced bullish positions to close . Market-wide futures liquidations climbed to roughly $1.57 billion over 24 hours, about four times the previous level. Bitcoin accounted for approximately $522 million and Ether for $361 million, together representing more than half of the total. Trading volume increased 74% to $346.1 billion while open interest declined 3% to $136.3 billion, indicating widespread position closures rather than fresh leverage accumulation.
The liquidation wave followed the Binance incident, but forced unwinding amplified the decline rather than establishing a single cause for Bitcoin’s move . Technology stocks were also under pressure, adding a broader risk-off element to the session. Bitcoin open interest fell only 1.4% while BTC declined around 3.1%, whereas Ether open interest dropped 5.8% alongside a 4% price decline. The episode extends the market mechanics highlighted in recent crypto liquidation coverage .
Options markets also became more defensive. Five of the six highest-volume Bitcoin options were puts below the prevailing market price , while the 25-delta skew rose across maturities for both Bitcoin and Ether, showing increased demand for downside protection. The $74,000 Bitcoin put expiring November 13 led volume. Analyst Benjamin Cowen separately identified the 200-day moving average near $73,000 as a potential support area if Bitcoin breaks lower, while emphasizing that a capitulation-style volume spike had not yet appeared.
Binance said roughly $3 billion of affected assets had been frozen while withdrawals remained paused. The incident therefore combined exchange-security uncertainty with leveraged market stress and defensive derivatives positioning. The distinction between assets that can be frozen and decentralized coins remains relevant to the stablecoin containment response , while previous Bitcoin liquidation episodes provide context for how leverage can magnify volatility. Bitcoin’s next direction remains conditional on whether selling stabilizes, leverage resets further and buyers can reclaim the $79,000 to $80,000 area. For now, the rebound has not erased the breakdown or the market’s elevated demand for downside protection.
