Bitcoin Set Fresh Highs After Major Crypto Shocks. Can It Rebound Again After Binance?

Recovery followed Bitfinex and Binance breaches

Bitcoin set a new record three months after the Bybit hack

The cryptocurrency market has been rattled by the Binance hacking incident, bringing renewed attention to Bitcoin’s history of bouncing back from past shocks. Hacks and bankruptcies at major exchanges have triggered sharp short-term selloffs, but Bitcoin later surpassed its previous peaks in subsequent bull markets. The time needed for recovery has ranged from months to years.

One of the best-known examples was the 2016 Bitfinex hack. News that about 120,000 Bitcoin had been stolen sent the cryptocurrency down more than 20% in a single day. The shock, however, did not derail the longer-term rally. By late 2017, Bitcoin had climbed to nearly $20,000, setting what was then a record high.

The 2014 collapse of Mt. Gox also shook the market. When the then-major exchange halted withdrawals and went bankrupt, distrust spread over the safety of Bitcoin held on exchanges. Even so, Bitcoin later recovered and joined the 2017 bull market.

Binance went through a similar episode. After news of a hack broke in May 2019, Bitcoin fell as much as 4.2% intraday to around $5,700. But by late June, about seven weeks later, it had risen to the $13,800 range. That marked a gain of about 140% from its post-hack low.

Some recoveries took longer. Around the collapse of FTX in November 2022, Bitcoin fell to about $15,500. It later rebounded and rose above $73,800 in March 2024, setting a new record. That was about 4.8 times its low. The shock tied to FTX, however, reflected not only a hack but also the misuse of customer funds, a liquidity crisis and bankruptcy.

Bitcoin also reset its peak after last year’s Bybit hack. After about $1.5 billion worth of Ethereum was stolen on Feb. 21, 2025, the market turned weak. About three months later, on May 21, Bitcoin broke above $109,400. That rebound was also driven by easing tariff concerns, renewed appetite for risk assets and broader institutional acceptance of cryptocurrencies.

In the latest Binance incident, the market’s focus is on how long the shock will last. Binance has stressed that user funds are safe while it conducts security checks. Tether and Circle have frozen combined assets worth about $2.4 billion. The amount ultimately recovered, how losses are compensated and the speed of restoring normal withdrawals will be key factors in determining trust in the exchange.