The $6.3 billion Binance hack during late U.S. Thursday hours shook cryptocurrency markets, but experts at three Wall Street institutions remain unconvinced that the repercussions will endure.
Cantor Fitzgerald, TD Cowen, and Compass Point all shared comparable perspectives in Friday research publications, maintaining that while the theft represents a major blow to the globe’s largest digital asset exchange, there is minimal evidence so far suggesting it threatens the broader crypto ecosystem.
Cantor analyst Ramsey El-Assal noted that the swift reaction from the industry might even present a positive aspect.
Tether locked over $1.5 billion of the compromised tokens, Circle blocked an additional $800 million, and Ripple secured approximately $200 million. Altogether, Binance reports that around $3 billion of the pilfered funds have been frozen, though this status does not guarantee the capital has been fully recovered.
“While spectacular crypto hacks have become all too common, we believe the ecosystem is steadily adapting,” El-Assal wrote.
He anticipates that digital asset equities, such as Coinbase, Robinhood, and Strategy, will bounce back once the initial panic clears. Stock prices for Coinbase and Strategy dropped 12% on Friday, while Robinhood fell nearly 9%, reflecting broader market sentiment.
“We would be buyers on weakness,” he said.
TD Cowen’s Lance Vitanza offered a similar perspective, asserting that the security breach highlighted vulnerabilities within Binance’s defenses rather than flaws in the underlying technology of bitcoin or other digital assets.
“We do not stop using dollars when a bank is robbed, just as car theft does not invalidate the automobile,” Vitanza wrote.
This distinction is crucial because the incident seems to have targeted Binance’s transaction-signing setup instead of the Bitcoin blockchain itself. Vitanza stated that the market pullback could present an opportunity for investors to increase their holdings in bitcoin and equities of firms holding the cryptocurrency on their balance sheets.
At Compass Point, analysts Ed Engel and Michael Donovan argued that Binance likely possesses the financial capacity to reimburse its users. They highlighted Binance’s documented reserves, including $1.2 billion in surplus USDT holdings, roughly $1.2 billion in bitcoin reserves, and more than $1.5 billion in USDC treasury funds.
“We believe Binance has more than enough liquidity to cover the hole,” they wrote.
This does not imply that the aftermath will be without consequences.
Compass Point anticipates downward pressure on stablecoin circulation as Binance compensates users, and cautioned that outflows from decentralized credit platforms might accelerate once trading resumes.
The security breach could also direct customer traffic toward Binance competitors, including Coinbase and Bullish, alongside decentralized trading venues like Hyperliquid, where participants execute trades without surrendering custody of their funds to a centralized platform.
Regarding bitcoin, Compass Point is monitoring the $75,000 to $77,000 threshold. A drop beneath these thresholds could jeopardize the recent upward trend.
As El-Assal summarized: “Overall, this is painful, but it is not 2022.”
Originally published at https://www.coindesk.com/markets/2026/10/30/wall-street-analysts-urge-investors-to-buy-crypto-stocks-on-weakness-after-usd6-3-billion-binance-hack.
