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Cantor Fitzgerald, TD Cowen, and Compass Point stated in their report to clients on Friday that the $6.4 billion Binance hacking incident, which is also the largest of its kind to date, is unlikely to undermine the recovery of the crypto market, and viewed this sell-off as an opportunity to buy crypto-related stocks.
Cantor's Ramsey El - Assal indicates that 'we will buy during the callback,' and it mentions that $3 billion in funds have been frozen. TD Cowen argues that this is more of a security issue related to Binance rather than a problem with Bitcoin itself; Compass Point states that there is 'enough liquidity to fill the gap.'
However, the stance of Moody is more cautious.
Wall Street analysts told clients that this record-breaking Binance hacking incident is an opportunity to buy, not a reason to flee the market, and urged investors to buy crypto-related stocks when prices are under pressure.
Analysts from Cantor Fitzgerald, TD Cowen, and Compass Point stated in their research report on Friday that this theft case, amounting to approximately $6.3 billion and also considered the largest crypto hacking incident in history, is unlikely to undermine the overall recovery of the market.
A day after this attack shook the market and pushed Bitcoin down near $77,000, analysts made the aforementioned soothing assessments.
Cantor's Ramsey El - Assal indicates that the industry has acted swiftly in controlling losses. Stablecoin issuers and other institutions have frozen approximately $3 billion in stolen funds, of which Tether has frozen over $1.5 billion, Circle has frozen about $800 million, and Ripple has frozen around $200 million.
Lance Vitanza also holds a similar view, believing that the vulnerability exposed this time is a security weakness of Binance itself, rather than a problem with the underlying technology of Bitcoin. They regard this round of selling as an opportunity to increase their holdings of Bitcoin and the stocks of listed companies that hold Bitcoin.
Compass Point's Ed Engel and Michael Donovan indicate that Binance 'has sufficient liquidity to fill the gap', but they also point out that compensating customers may put pressure on the stablecoin supply, while competitors such as Coinbase and Hyperliquid may gain more business as a result. They are monitoring the key level of Bitcoin between $75,000 and $77,000.
Compared to directly buying tokens, the logic of buying stocks is that alternatives such as Coinbase, Robinhood, and Strategy which are regulated and listed on exchanges can provide exposure to cryptocurrencies, while avoiding the custody risks exposed by this hacking incident. Moreover, their prices tend to rebound after emotions stabilize.
Not everyone is so optimistic. Moody, the Vice President of Digital Assets at Ratings, stated that this incident “highlighted the higher cybersecurity risks associated with hot wallets” and “illustrated the inherent risk concentration of large, centralized intermediaries.”
He warned that the broader impact will depend on "the ultimate losses, the counterparties affected, the recovery of assets, and most importantly, whether this incident will lead to a wider range of disruptions or a loss of confidence."
Binance has reserved $6.34 billion to cover the losses and informed users that their assets are safe; meanwhile, the United States Secret Service and Federal Bureau of Investigation have launched investigations. Companies such as TRM and Chainalysis have linked this hacking incident to North Korea's TraderTraitor organization.
