At Compass Point, analysts Ed Engel and Michael Donovan argued that Binance could probably afford to make customers whole
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"CoinDesk believe Binance has more than enough liquidity to cover the hole," they wrote.
Key facts
He expects crypto stocks, including Coinbase COIN $143.21
Market Closed, Robinhood HOOD $84.98
Market Closed and Strategy MSTR $130.49
Market Closed, to recover once the initial panic subsides
Tether froze more than $1.5 billion in stolen assets, Circle CRCL $72.54
Market Closed blocked another $800 million, and Ripple froze roughly $200 million
For bitcoin, Compass Point is watching the $75,000 to $77,000 range
TD Cowen's Lance Vitanza made a similar case, arguing that the hack exposed weaknesses in Binance's security rather than in the technology behind bitcoin BTC $77,401.38 or other cryptocurrencies
Summary
Wall Street analysts see the crypto selloff as a potential buying opportunity, arguing that the Binance hack poses little threat to the broader industry. Crypto firms have frozen roughly $3 billion of the stolen assets, while Compass Point says Binance has enough liquidity to cover customer losses. Coinbase, Bullish and Hyperliquid could gain market share from Binance, though analysts warn of pressure on stablecoins and decentralized lending markets. The $6.3 billion Binance hack during the late U.S. Thursday hours rattled crypto markets, but analysts at three Wall Street firms aren't convinced the fallout will last. Cantor Fitzgerald, TD Cowen and Compass Point all struck a similar tone in Friday research notes, arguing that, while the theft is a serious blow for the largest crypto exchange in the world, there's little reason so far to think it poses a threat to the wider crypto market.