The largest financial hack in history could provide a silver lining for Ethereum’s price as Bybit announced a full recovery, Bitfinex analysts wrote.
Hackers, believed to be the notorious North Korean group Lazarus, stole nearly $1.5 billion in Ethereum (ETH) and Ether derivatives from crypto exchange Bybit last week.
Ethereum’s price, which had shown tepid action before the hack, weakened further due to the Bybit breach and subsequent market volatility. Discussions about the hack’s impact flooded social platforms, but Bitfinex analysts believe Ether’s price could benefit from the incident.
“If Bybit needs to replenish customer funds, they may be forced to buy back large amounts of ETH,” analysts wrote in the Bitfinex Alpha Market report.
Bybit lost over 400,000 ETH from its cold wallet last Friday. However, Bybit CEO Ben Zhou said the exchange had covered the losses as of Feb. 24. Zhou also published a proof-of-reserves audit to restore community confidence after the attack.
Data from Lookonchain showed the platform executed ETH purchases, secured loans from bridge partners, and received large deposits from whales. Buying ETH on the open market and through other avenues “could counteract some of the selling pressure and even drive prices higher,” Bitfinex analysts wrote.
Ethereum, most cryptos in correction phase says Bitfinex
Bitfinex analysts emphasized that Ethereum’s potential price recovery due to Bybit’s market activity was only a possibility. The broader digital asset market remained highly volatile, with most major cryptocurrencies stuck in a correction phase, according to the report.
“Bitcoin, Ethereum, and Solana have all declined in February from rallies in November and December 2024, while Memecoins, which surged in December, have fallen sharply by 37.4%,” the report said.
Crypto’s monthly open interest also dropped as traders reduced leveraged positions “in response to a combination of weaker market momentum and increasing uncertainty,” analysts noted. According to Bitfinex, macroeconomic clarity will likely determine the next major move for Bitcoin (BTC) and the broader crypto market.
