Wall Street Analysts: $6.3B Binance Hack Unlikely to Halt Crypto Market Recovery

October 30: According to CoinDesk, analysts at Cantor Fitzgerald, TD Cowen and Compass Point said in research notes on Friday that the $6.3 billion Binance hack is unlikely to interrupt the crypto market's recovery. Cantor Fitzgerald analyst Ramsey El-Assal noted that the industry responded quickly, with Tether having frozen more than $1.5 billion, Circle about $800 million and Ripple about $200 million; he expects Coinbase, Robinhood and Strategy to rebound once the panic subsides, and said he "will buy on weakness in the stock prices," adding that "overall this is painful, but this is not 2022." TD Cowen analyst Lance Vitanza argued that what the incident exposed was a security vulnerability at Binance, not a problem with Bitcoin's technology itself. Compass Point analysts Ed Engel and Michael Donovan believe Binance has the ability to cover user losses, but that its compensation payouts could put pressure on stablecoin supply, and withdrawals from decentralized lending platforms could also accelerate; the two are watching the $75,000 to $77,000 Bitcoin range and believe a break below it could put the recent rebound at risk, and said Coinbase, Bullish and Hyperliquid may gain business as a result. On Friday, shares of Coinbase and Strategy both fell about 12%, while Robinhood dropped about 9%.