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Bitcoin Drops $2K Amid Alleged $1.5B Bybit Hack

Bitcoin Drops $2K Amid Alleged $1.5B Bybit Hack

Reports of a $1.5 billion Bybit security breach triggered a rapid Bitcoin sell-off, wiping $70B from the crypto market in minutes. Bybit’s CEO confirmed the incident but assured user funds remain secure.

Joe G & Money Talks
February 22, 2025 • Estimated Reading Time: 6 minutes

What we will talk about today...

Ethereum Drops 5% Amid Bybit Hack & Hard Fork Rumors

Bitcoin Drops $2K Amid Alleged $1.5B Bybit Hack

Bitcoin Eyes $100K Amid $35B Exchange Surge

Ethereum’s price slumped after a $1.5 billion Bybit hack and growing speculation about a potential blockchain rollback. Analysts warn ETH could drop another 28% if bearish patterns persist.

Ethereum is toast.
They can roll back the chain and destroy what is left of the decentralization claim or allow North Korean baad actors to keep $1.4B of ETH and unleash an eternal internal battle.
Either way, it is terrible.
And a collection of best of the timeline now 🧵1/
— Sina 🗝️⚡ 21st Capital (@Sina_21st)
1:57 AM • Feb 22, 2025

.@VitalikButerin will you advocate to roll back the chain to help @Bybit_Official ?
— Arthur Hayes (@CryptoHayes)
9:50 PM • Feb 21, 2025

Main Points:
- Bybit Hack Fallout: A $1.5B exploit linked to Lazarus Group raises market fears.
- Hard Fork Speculation: Industry voices debate rolling back the blockchain to undo the hack.
- Bearish Patterns: Analysts warn of a potential ETH drop to $1,953.
- Market Uncertainty: Ethereum Foundation remains silent on rollback discussions.
Detailed Insights:
- Security Breach: Over 401,000 ETH was stolen, but Bybit assures solvency.
- Rollback Debate: Crypto leaders question Ethereum’s stance on reversing transactions.
- DAO Hack Echoes: Potential rollback comparisons to Ethereum’s 2016 split.
- Bear Pennant Risk: A confirmed breakdown could trigger further price declines.

@USTreasury Excellent point
— Parman 🔑 Paranoid Bitcoin Mentor & NeverSeller™ (@parman_the)
3:35 AM • Feb 22, 2025

TLDR on the state of ETH
• Bybit won’t recover the stolen ETH.
• Their bridge loan covers withdrawals, but they must buy back ETH later.
• Lazarus can’t liquidate all the ETH fast enough.
• This creates buying pressure, but ETH will still dump.
— arndxt (@arndxt_xo)
5:11 AM • Feb 22, 2025

Could Ethereum’s credibility be at risk if a rollback happens?

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Bitcoin Drops $2K Amid Alleged $1.5B Bybit Hack

Reports of a $1.5 billion Bybit security breach triggered a rapid Bitcoin sell-off, wiping $70B from the crypto market in minutes. Bybit’s CEO confirmed the incident but assured user funds remain secure.

Seems that @Bybit_Official hot wallet just got hacked.
Though, it's a multi-sign $1.5B worth of $ETH was withdrawn to the new address and is currently being sold
More info below ⬇️
— Finish 🏁 (@0xFinish)
3:15 PM • Feb 21, 2025

Bybit ETH multisig cold wallet just made a transfer to our warm wallet about 1 hr ago. It appears that this specific transaction was musked, all the signers saw the musked UI which showed the correct address and the URL was from @safe . However the signing message was to change… x.com/i/web/status/1…
— Ben Zhou (@benbybit)
3:44 PM • Feb 21, 2025

Main Points:
- Massive Exploit: Over 400,000 ETH ($1.1B) transferred to an unknown wallet.
- BTC Plunge: Bitcoin fell over $2,000, altcoins saw steeper losses.
- Market Panic: Crypto market cap dropped by $70B in under 30 minutes.
- Bybit’s Response: CEO confirmed a compromised wallet but assured withdrawals remain open.
Detailed Insights:
- Hacker Activity: Stolen ETH swapped for stETH and mETH, raising laundering concerns.
- ZachXBT’s Take: On-chain sleuth confirms it’s a ‘security incident.’
- Bybit’s Defense: Claims internal transfer attempt led to exploit.
- Investor Caution: Fear of further market instability as details unfold.

Could this lead to tighter exchange security measures?

₿itcoin reached $96,445. -2.24%

♢Ethereum reached $2,728. -2.71%

Bitcoin Eyes $100K Amid $35B Exchange Surge

Bitcoin surged near $100,000 after $35 billion in BTC moved across exchanges in 24 hours. Institutional interest and U.S. state-level Bitcoin reserves fuel optimism for further gains.

Main Points:
- Massive Trading Spike: Over 355,000 BTC traded, pushing volume up 17.6%.
- Exchange Activity: Binance (+17%), Bybit (+7.9%), and Coinbase (+2.9%) saw surges.
- Price Movement: BTC jumped from $96,875 to $99,498 before minor corrections.
- Institutional Momentum: U.S. states consider Bitcoin reserves; MicroStrategy eyes $2B BTC buy.
Detailed Insights:
- Psychological Resistance: Bitcoin nears the crucial $100K level, 10% from its ATH.
- State Adoption: Utah advances plans for a Strategic Bitcoin Reserve.
- Saylor’s Strategy: MicroStrategy boosts bullish sentiment with a $2B loan for BTC.
- Market Outlook: Analysts predict institutional FOMO could push BTC beyond $100K soon.