Bitcoin (CRYPTO: BTC) has largely stabilized after the $6.3 billion Binance hack as historical data suggests major exchange breaches rarely dictate the asset's long-term price direction.
BTC Shrugs Off Binance Hack
Bitwise's Matt Hougan pointed to an analysis of the ten largest crypto-related hacks including FTX, Wormhole, Mt.Gox which showed Bitcoin finishing the following month higher in five cases and lower in the other five.
Bitcoin dropped almost 4% on Friday following the Binance attack, broadly tracking the Nasdaq-100's 3% decline.
The analysis suggests exchange security breaches do not consistently determine Bitcoin's price direction.
The key distinction is that hackers compromised Binance, not the Bitcoin blockchain itself. The 21-million-coin supply cap, network operations and institutional adoption remain unchanged by the attack.
Can Stronger Custody Protect BTC From Future Hacks?
The Binance attack reportedly involved hackers accessing an employee's laptop and draining exchange hot wallets.
Hougan highlighted institutional custody, cold storage and spot Bitcoin ETFs as safer alternatives, noting that Bitwise requires multiple approvals and restricts transfers to preapproved addresses.
Although, ETF investors cannot directly withdraw their Bitcoin, increasingly sophisticated AI-powered cyberattacks remain a threat.
Hougan believes stronger custody infrastructure could limit future hack-related disruptions.
He concluded that broader market conditions and institutional demand likely play a bigger role in Bitcoin's price direction.
"Crypto will move ahead, as it has in the past," he added.
