Bybit’s Billion-Dollar Hack May Have a Silver Lining for Ethereum’s Price

Despite the largest financial hack in history, Ethereum’s price may experience a boost due to Bybit’s full recovery efforts. According to Bitfinex analysts, Bybit’s need to replenish customer funds could lead to large-scale purchases of Ethereum (ETH), potentially countering selling pressure and driving prices higher.

Last week, hackers believed to be the notorious North Korean group Lazarus stole nearly $1.5 billion in Ethereum and Ether derivatives from crypto exchange Bybit. The breach led to market volatility and further weakened Ethereum’s price, which had been showing tepid action prior to the hack.

Bybit’s Recovery Efforts

Bybit CEO Ben Zhou announced that the exchange had covered the losses as of February 24, and published a proof-of-reserves audit to restore community confidence. Data showed that the platform executed ETH purchases, secured loans from bridge partners, and received large deposits from whales.

“If Bybit needs to replenish customer funds, they may be forced to buy back large amounts of ETH.” – Bitfinex analysts

Bitfinex analysts emphasized that Ethereum’s potential price recovery due to Bybit’s market activity was only a possibility, as the broader digital asset market remained highly volatile. Most major cryptocurrencies, including Bitcoin (BTC), Ethereum, and Solana, have declined in February from rallies in November and December 2024.

Crypto Market Trends

Here are some key trends in the crypto market:

  • Correction phase**: Most major cryptocurrencies are stuck in a correction phase.
  • Monthly open interest**: Crypto’s monthly open interest has dropped as traders reduce leveraged positions.
  • Macroeconomic clarity**: The next major move for Bitcoin and the broader crypto market will likely be determined by macroeconomic clarity.

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