The cryptocurrency market came under renewed selling pressure after the reported $6.3 billion Binance exploit intensified concerns across the digital-asset sector. Bitcoin dropped to an overnight low of $76,400, its weakest level since September 18, while Ethereum briefly touched $2,170 before both assets recovered part of their losses. The market reaction was accompanied by a sharp increase in derivatives liquidations, which climbed fourfold to approximately $1.57 billion.
The scale of forced position closures highlights how the security incident amplified existing market weakness. Crypto futures trading volume increased 74% to $346.1 billion, while aggregate open interest declined 3% to $136.3 billion. The combination suggests that leveraged traders were reducing exposure as volatility increased, rather than simply opening new positions in response to falling prices. Bitcoin and Ethereum accounted for more than half of total liquidations, at approximately $522 million and $361 million, respectively.
In this story
2 assets
Positioning data revealed different responses across major assets. Bitcoin declined 3.1% over 24 hours, while its open interest fell by only 1.4%, indicating comparatively limited capital outflows from its futures market. Ethereum, by contrast, lost 4% while open interest dropped 5.8%, pointing to a more substantial reduction in leveraged exposure. Positive funding rates for both assets showed that long positions remained dominant, although Ethereum's declining rate suggested that bullish positioning was weakening.
Selling pressure was also visible in Solana and NEAR derivatives. Solana's open interest contracted 13.3% alongside a 3.3% price decline, while NEAR recorded an 11.8% reduction in open interest despite relatively little price movement. Both assets shifted to negative funding rates, indicating that short positions were paying long positions. BNB experienced a 6.2% decline, the largest among the major cryptocurrencies highlighted in the report, while its dollar-denominated open interest remained broadly unchanged.
Not all assets followed the broader downturn. HYPE advanced 15%, accompanied by a 28% increase in open interest and a substantial rise in trading volume. This combination indicates that new speculative positions entered the market as most major cryptocurrencies weakened. Meanwhile, funding data showed that negative rates had spread to BNB, SOL, NEAR and TRX, reflecting a shift toward bearish positioning in several derivatives markets.
Options activity provided another indication of growing caution. Five of the six highest-volume Bitcoin options were put contracts, with the $74,000 put expiring November 13 recording the highest volume. Ethereum options showed an even stronger preference for downside protection, led by the $2,000 put with the same expiry. The increase in 25-delta skew across both assets indicated that investors were placing greater value on protection against further declines. Implied volatility also rose during Asian trading before partially retreating.
The pressure extended beyond Bitcoin and Ethereum, although several altcoins associated with the exploiter's reported holdings rebounded. ENA gained 8.4%, PEPE rose 7.3%, UNI advanced 4.6% and LINK added 3.7%. Aave and Arbitrum also recovered around 4.5%, while Aave reportedly froze its lending markets across 16 networks after the exploiter borrowed approximately $44.6 million in ETH against stolen USDT. Thorchain gained 6.2% amid reports tracing part of the stolen funds through its cross-chain protocol, while LayerZero climbed 12%.
Broader sentiment indicators continued to deteriorate. The Altcoin Season Index declined to 45 from 54, while the Fear and Greed Index fell to 36, placing market sentiment in the fear zone. The combination of exchange-security concerns, heavy derivatives liquidations and stronger demand for protective options suggests that traders are becoming increasingly defensive. Whether Bitcoin and Ethereum can stabilize after the initial shock, alongside a reduction in forced liquidations, will be important in determining whether the selloff remains contained or develops into a broader market correction.
