Three Wall Street firms back the crypto market: Binance hack unlikely to derail recovery; recommend buying the dip—I’m buying the BNB dip
Analysts at three Wall Street firms—Cantor Fitzgerald, TD Cowen, and Compass Point—all believe that although Binance suffered a hack resulting in losses of approximately $6.3 billion, there is currently insufficient evidence that the incident will threaten the broader crypto market. The market’s previous recovery trend is unlikely to be interrupted as a result.
Cantor Fitzgerald analyst Ramsey El-Assal noted that Tether has frozen more than $1.5 billion in stolen assets, Circle has frozen about $800 million, and Ripple has frozen about $200 million. Binance says the total amount of stolen funds frozen so far is about $3 billion. He believes the crypto industry is gradually improving its ability to respond to security incidents of this kind, and expects crypto-related stocks such as Coinbase, Robinhood, and Strategy to rebound once market panic subsides. He recommends that investors buy the dip.
TD Cowen analyst Lance Vitanza believes the attack exposed security weaknesses in Binance’s own transaction-signing infrastructure, rather than any flaws in the underlying technology of cryptocurrencies such as Bitcoin. The market sell-off could present an opportunity to increase holdings of Bitcoin and shares in publicly traded companies that hold Bitcoin.
Compass Point analysts believe Binance has sufficient liquidity to make up the shortfall, and expect its excess USDT reserves, BTC reserves, and USDC funds to be enough to cover the losses. However, the firm also warned that compensating customers could put pressure on stablecoin supply and potentially drive users away from centralized exchanges toward competing platforms such as Coinbase, Bullish, and Hyperliquid. $BNB
Analysts at three Wall Street firms—Cantor Fitzgerald, TD Cowen, and Compass Point—all believe that although Binance suffered a hack resulting in losses of approximately $6.3 billion, there is currently insufficient evidence that the incident will threaten the broader crypto market. The market’s previous recovery trend is unlikely to be interrupted as a result.
Cantor Fitzgerald analyst Ramsey El-Assal noted that Tether has frozen more than $1.5 billion in stolen assets, Circle has frozen about $800 million, and Ripple has frozen about $200 million. Binance says the total amount of stolen funds frozen so far is about $3 billion. He believes the crypto industry is gradually improving its ability to respond to security incidents of this kind, and expects crypto-related stocks such as Coinbase, Robinhood, and Strategy to rebound once market panic subsides. He recommends that investors buy the dip.
TD Cowen analyst Lance Vitanza believes the attack exposed security weaknesses in Binance’s own transaction-signing infrastructure, rather than any flaws in the underlying technology of cryptocurrencies such as Bitcoin. The market sell-off could present an opportunity to increase holdings of Bitcoin and shares in publicly traded companies that hold Bitcoin.
Compass Point analysts believe Binance has sufficient liquidity to make up the shortfall, and expect its excess USDT reserves, BTC reserves, and USDC funds to be enough to cover the losses. However, the firm also warned that compensating customers could put pressure on stablecoin supply and potentially drive users away from centralized exchanges toward competing platforms such as Coinbase, Bullish, and Hyperliquid. $BNB