Crypto this week (26 Oct–1 Nov 2026): how markets reacted to the Binance hack

Some weeks are about the whole market. Others are about one event that the whole market reacts to. Between 26 October and 1 November 2026, bitcoin opened at $80,049, where the previous week had ended, and briefly rose above $81,800. Then, on Thursday evening (UTC), came a large theft from Binance's wallets. Here is how prices, funds and stablecoins responded, plus three short briefs.

Key points: what happened in crypto this week?

• Bitcoin closed the week at $78,294 (€70,177), down 2.19% in dollars and 1.66% in euros, after a low of $76,281 on 30 October.
• CoinDesk data showed $1.57 billion of crypto futures positions liquidated as bitcoin and ether fell after the Binance hack.
• US spot bitcoin ETFs took in money from Monday to Thursday, then a net $643.3 million left on Friday. The week ended at –$202.6 million (The Block).
• Binance said about $3 billion of the affected assets was frozen, mostly the stablecoins USDT and USDC. Bitcoin and ether can't be frozen this way.
• Also this week: the ECB warned about fake "digital euro pilot" letters, Coinbase's 30 October deadline passed for EEA customers holding certain stablecoins, and Keystone said it will destroy 18,835 unsold wallets.

The big story: the market in the week of the Binance hack

The hack in brief

At about 20:05 UTC on Thursday 29 October 2026, Binance says, attackers drained its hot (online) wallets. Binance put the impact at about $6.3 billion of client assets; blockchain analytics firms put it at $6.36 billion (TRM Labs) to $6.43 billion (Elliptic). On Saturday 31 October the FBI attributed the theft to North Korea, and on Sunday 1 November Binance began reopening withdrawals in phases, with bitcoin among the first networks. Our separate article on the hack covers the details.

What happened to prices

Bitcoin (BTC) opened the week at $80,049 (€71,363). After the US Federal Reserve kept interest rates unchanged on Wednesday 28 October, bitcoin slipped to about $79,800 in Asian trading hours on Thursday. CoinDesk tied that move to the Fed's "hawkish hold" (a pause that leans towards higher rates) and weaker-than-expected results from Alphabet and Samsung. Bitcoin then recovered to the week's high of $81,840 on Thursday afternoon (UTC), shortly before the Binance news.

As the hack was reported, bitcoin was down 4.5% over 24 hours, at $76,664, by 22:00 US Eastern time on Thursday, and Ethereum (ETH) was down 5.2% at $2,190, according to The Block. The week's low in CoinGecko's four-hour data was $76,281 on Friday 30 October (€68,288 in euros, also on Friday).

Bitcoin closed at $78,294 (€70,177), down 2.19% in dollars and 1.66% in euros. The euro figure fell less because the euro weakened against the dollar. Ether closed at $2,274 (€2,038), down 2.27% in dollars.

Why it matters to you: CNBC, citing Anchorage Digital, reported that past exchange hacks were followed by an average bitcoin drop of 8.3% within 24 hours. This time CNBC put the fall at about 4% on the day. The Bitcoin network itself was not hacked: the theft hit one exchange's wallets.

$1.57 billion of forced selling

Some traders borrow money to make bigger bets, which is called leverage. If the price moves against them, the platform closes their position automatically: a liquidation. CoinDesk data showed $1.57 billion of crypto futures positions liquidated as bitcoin and ether fell after the hack, including $522 million in bitcoin and $361 million in ether.

Why it matters to you: borrowed money can wipe out a position within hours when big news hits.

Stablecoins frozen, bitcoin not

A stablecoin is a crypto token designed to keep a steady value, usually one US dollar. The companies that issue stablecoins such as USDT and USDC can block their tokens. Binance said about $3 billion of the affected assets was frozen. By 1 November, Tether had frozen more than $1.5 billion of USDT and Circle more than $1.1 billion of USDC.

Bitcoin and ether can't be frozen this way. Blockchain analytics firm TRM Labs, cited by CoinDesk, said 18,270 BTC (about $1.47 billion) was among the stolen assets. USDT and USDC stayed close to one dollar. Our stablecoins course explains how these tokens work.

ETFs: four days in, one big day out

An ETF (exchange-traded fund) is a fund that trades on a stock exchange like a share. A "spot" bitcoin ETF holds actual bitcoin. From Monday to Thursday, US spot bitcoin ETFs took in about $441 million combined (Decrypt). On Friday 30 October a net $643.3 million left, the largest daily outflow in four months, according to The Block. The week ended at –$202.6 million (The Block; Decrypt put it at about –$202 million). US spot ether ETFs had outflows on all five days, ending at –$431.5 million (The Block).

Why it matters to you: one analyst quoted by The Block said spot ETF holders had "no direct exposure to Binance", yet money still left. Analysts called Friday a "sentiment shock" and a "de-risking day", with the outflow under 1% of the funds' assets. One day like that can turn a positive week negative.

Three briefs

1. The ECB warns about fake "digital euro pilot" letters

This week the European Central Bank (ECB) warned that letters made to look like its own were inviting people to invest in a "digital euro pilot". The ECB says these are scams: it never asks the public for investments, money or personal information, and victims should contact their local police. Press reports say fraudsters also use AI-generated videos of ECB officials and copied websites. The digital euro does not exist for the public yet. According to the ECB's pilot page, a 12-month pilot with selected payment providers, merchants and central-bank staff is planned to start in the second half of 2027.

Why it matters to you: the ECB says it does not offer any investment products related to the digital euro. Our spot-the-scam course shows the warning signs.

2. Coinbase's deadline for stablecoins not authorised under MiCA

Coinbase gave its retail customers in the European Economic Area (EEA) until 30 October 2026 to withdraw certain stablecoins that are not authorised under MiCA, the EU's crypto law, according to press reports of its notice. Per those reports, balances left after that date are converted once, at the market rate, into USDC, or another supported asset where USDC isn't suitable. The Spanish-language outlet CriptoNoticias counted 14 assets, including USDT, PYUSD and DAI. Coinbase notes the conversion may be taxable in some jurisdictions, and it gives MiCA's transition period for these coins, which ended on 1 July 2026, as the reason. Separately, an 8 October opinion from ESMA, the EU's markets regulator, gives MiCA-authorised platforms until about 8 January 2027 to wind down services in these stablecoins.

Why it matters to you: holding USDT in your own wallet is not banned; MiCA limits what authorised platforms can offer. Our course on crypto rules in the EU explains the background.

3. Keystone to destroy 18,835 unsold hardware wallets

On Monday 26 October, hardware-wallet maker Keystone disclosed that the attacker behind its 20 October website breach had also stolen its "WebAuth" key, the factory secret its website uses to confirm a device is genuine. Because the key couldn't be changed on units in stock, Keystone says it will destroy 18,835 unsold wallets. Records of 25,964 buyers, including names and addresses, were exposed. Keystone says recovery phrases and private keys were not involved, and that devices delivered before 20 October can be trusted if they pass its authenticity check.

Why it matters to you: leaked addresses can lead to fake "recall" letters. Keystone says it will not ask customers to return devices. Buy hardware wallets only from the maker or an official reseller; see our course on storing cryptocurrencies.

What to take from this week

The theft hit one exchange, but the whole market moved: prices fell, leveraged bets were closed and, the next day, bitcoin funds had their largest outflow day in four months. Even so, bitcoin ended the week 2.19% lower. Binance itself warned customers about scams and urged them to avoid unofficial links, messages and requests for account information, and this week's fake letters are a reminder to check who is really contacting you.

What you can do now

• Learn why prices react to news, and how leverage speeds up a fall, in about the crypto market.
• Find out what hot and cold wallets and private keys are in our introduction to security.
• If you use a crypto provider in the EU, you can look it up in ESMA's public register of authorised firms, as Luxembourg's financial regulator, the CSSF, advises.

Questions readers ask

What happened to the bitcoin price between 26 October and 1 November 2026?

It opened at $80,049, reached $81,840 on 29 October and fell to $76,281 on 30 October after the Binance hack was reported. It closed at $78,294 (€70,177), down 2.19% in dollars and 1.66% in euros.

Can stablecoins be frozen?

Yes. The companies that issue stablecoins such as USDT and USDC can block their tokens. By 1 November, Tether had frozen more than $1.5 billion of USDT and Circle more than $1.1 billion of USDC. Bitcoin and ether can't be frozen this way.

Can I invest in the digital euro?

No. The digital euro doesn't exist for the public yet, and the ECB says it never asks the public for investments. Its pilot, with selected payment providers, merchants and central-bank staff, is planned to start in the second half of 2027.

Crypto prices can rise and fall sharply, and you could lose some or all of the money you put in. Crypto is not covered by deposit protection. This article is for education, not financial advice.