Crypto Market Shaken: Bybit Hack Leads to $1.4 Billion Loss, Impacting Bitcoin, Ethereum, XRP, and Dogecoin

The crypto market is reeling from a massive security breach at Bybit, one of the world's largest cryptocurrency exchanges. The hack, which occurred on Friday, resulted in the theft of approximately $1.4 billion worth of Ethereum (ETH) and other assets, sending shockwaves through the market and impacting the prices of major cryptocurrencies.



The hacker exploited a vulnerability in Bybit's multi-signature cold wallet, allowing them to manipulate the transaction signing process and transfer the funds to an unidentified address. Bybit CEO Ben Zhou confirmed the breach, stating that the exchange is currently experiencing a "large-scale outage" and is working to resolve the issue.

The stolen funds, valued at over $1.4 billion, have been liquidated, causing Ethereum's price to drop by over 4% within an hour. The hack has also triggered liquidations of leveraged positions, with over $66.35 million in long and short liquidations reported in the past 24 hours (CoinGlass data).

The Bybit hack has raised concerns about the security of other exchanges and the broader crypto market, leading traders to pull back from high-risk assets. This has contributed to a dip in the total crypto market cap by 0.80% to $3.2T.



The hack has had a significant impact on the market capitalization and trading volumes of several major cryptocurrencies. Bitcoin's market capitalization dropped by 2.79% to $955,911.10 within 24 hours of the hack, while its trading volumes surged by over 82% to $29.46 billion within 24 hours, indicating increased market activity (CoinMarketCap, 2025).

Ethereum's market capitalization fell by 4.3% to $2,634.96 within 24 hours of the hack, with its trading volumes also increasing by over 82% to $29.46 billion within 24 hours, reflecting heightened market activity (CoinMarketCap, 2025).

XRP's market capitalization dropped by 6.9% to $2.52 within 24 hours of the hack, while its trading volumes surged by 82% to $29.46 billion within 24 hours, indicating increased market activity (CoinMarketCap, 2025).

Dogecoin's market capitalization fell by 5.6% to $0.2400 within 24 hours of the hack, with its trading volumes increasing by 82% to $29.46 billion within 24 hours, reflecting heightened market activity (CoinMarketCap, 2025).



The Bybit hack serves as a stark reminder of the risks associated with centralized exchanges and the importance of robust security measures. As the market continues to unfold, investors will be watching closely to see how Bybit and other exchanges respond to the breach and the potential impact on the broader crypto market.