Rocca identified two possible explanations for Bitcoin’s relative strength. Investors may have fewer attractive alternatives for rotating capital as confidence in technology stocks weakens, while existing Bitcoin holders may be reluctant to sell into dollars if cryptocurrency markets are approaching a cyclical bottom.
An asset that can “absorb a black-swan event, decouple from tech equity turbulence, and quickly reclaim ground” demonstrates the type of resilience that supports long term compounding, Rocca said.
However, he cautioned against treating the recent performance as proof that Bitcoin has become a reliable inflation hedge under all market conditions.
Bitcoin holds critical support as ETF outflows weigh on recovery
Despite Bitcoin’s relative resilience, analysts at Bitget Wallet warned that weak spot demand has yet to confirm a sustained market recovery.
According to the company’s latest Market Flow report, published Monday, Bitcoin is testing support between $76,500 and $77,000, with resistance concentrated around $80,000 to $81,000.
Aggregate Bitcoin futures open interest remains near $50 billion to $53 billion, while funding rates are mildly positive at approximately 0.005% to 0.01% every eight hours.
The derivatives data suggests stabilization rather than another wave of aggressive deleveraging, according to the report.
However, US spot Bitcoin ETFs recorded approximately $643 million in net outflows on October 30, leaving the week with roughly $202 million in net withdrawals.
Lacie Zhang, research lead at Bitget Wallet, said sustained spot buying and stable leverage would strengthen the case for a recovery.
The latest decline followed the Federal Reserve’s October 28 decision to hold interest rates at 3.75% to 4%, with two policymakers dissenting in favor of an increase.
Bitcoin was trading near $81,000 around the decision before the Binance hack accelerated selling and contributed to more than $1.5 billion in cryptocurrency liquidations.
Zhang said monetary policy had already weakened market sentiment before the security breach triggered additional forced selling and risk aversion.
Binance hack raises custody concerns as recovery progresses
The market turmoil followed an October 29 attack in which hackers stole approximately $6.3 billion from Binance hot wallets across ten blockchains, with most of the assets drained in roughly 20 minutes, according to TRM Labs.
US authorities attributed the attack to North Korea’s TraderTraitor hacking operation, while Binance said approximately $3 billion in stolen assets had been frozen.
The exchange has since replenished approximately 95% of affected assets using company funds and begun restoring withdrawals across multiple blockchain networks.
Zhang said a broader systemic crisis was not the most likely outcome, although prolonged withdrawal restrictions, deteriorating market liquidity and stablecoins losing their dollar pegs remain warning signs.
Bitget Wallet COO Alvin Kan also cautioned that moving assets away from centralized exchanges does not automatically eliminate security risks.
He said self custody reduces reliance on centralized intermediaries but requires effective key management, real time threat detection and transaction safeguards to protect users.
cryptobriefing.com
