Bitget Loses $351M in Hack as Bitcoin Reclaims $85K Production Cost

Bitget suffered a major security breach this week, with attackers moving roughly $351.6 million in assets after gaining access to a critical backend system. CEO Gracy Chen said early findings point to a possible connection to North Korean hackers, although attribution remains unconfirmed.

Bitcoin, meanwhile, briefly climbed above $85,000, a level JPMorgan estimates as the average cost of producing one BTC. The move could ease financial pressure on miners if prices remain above the threshold.

Elsewhere, Zcash extended its rally above $1,600 as its NU7 network upgrade approaches and 21Shares launched Europe’s first ZEC exchange-traded product.

1. Bitget loses $351 million in major security breach

Bitget suffered a $351.6 million hack after an attacker gained access to a critical backend system connected to the exchange’s wallet infrastructure. According to CEO Gracy Chen, the attacker manipulated transaction data to authorize transfers, while Bitget’s private keys and cold wallets remained secure.

Chen said IP addresses associated with the attack showed VPN usage patterns that raised the possibility of North Korean involvement, but stressed that the attribution remains unconfirmed. Bitget says the losses have been contained and no further unauthorized transfers are possible while it investigates the intrusion.

2. Bitcoin reclaims JPMorgan’s $85,000 production-cost level

Bitcoin moved above $85,000 this week after spending 280 days below the level JPMorgan estimates as the average cost of producing one BTC. The cryptocurrency subsequently slipped back to around $84,100, making the durability of the move an important consideration for miners.

JPMorgan said a sustained price above its production-cost estimate could reduce financial pressure on miners and lower the risk of forced BTC sales. The mining industry is also undergoing a broader shift toward AI computing, with Bitcoin’s network hash rate down about 19% from its October 2025 peak.

3. Zcash rallies as NU7 upgrade and European ETP arrive

Zcash traded above $1,600 after gaining around 10% on Wednesday, with momentum building ahead of its planned NU7 network upgrade. Currently targeted for November 5, NU7 would reduce block times from 75 seconds to 25 seconds, potentially delivering substantially faster transaction confirmations.

Institutional access is also expanding. 21Shares launched Europe’s first Zcash ETP on Euronext Amsterdam and Paris, while the U.S.-listed Grayscale Zcash ETF has recorded $306 million in cumulative inflows. Zcash has also seen increased use of shielded transactions, which recently reached their highest weekly level since 2022.