"Crypto Crash: $1.4B Bybit Hack Sparks Bitcoin, Ethereum Sell-Off"

Crypto markets experienced a significant downturn following a $1.4 billion hack on Bybit, with traders reacting by placing large bets on BGB, TON, and XMR for an early rebound. The exploit, linked to North Korea's Lazarus Group, sparked broad sell-offs across the market, with Bitcoin, Ethereum, and Solana posting some of the deepest losses.

Bybit CEO Ben Zhou confirmed that the breach affected only one Ethereum cold wallet, with all other wallets and withdrawals remaining unaffected. In an attempt to stabilize market confidence, Binance sent 50,000 ETH in emergency liquidity support to Bybit. Zhou also reassured users, stating that user funds were safe for withdrawals. Despite these efforts, traders remained cautious, with Bitcoin, Ethereum, and Solana posting some of the deepest losses.

At press time, Bitcoin traded at $96,671, marking a 2.4% decline in 24 hours, while Ethereum slipped to $2,736, reflecting a 2.9% drop. Solana extended its losses, plunging 3.0% to $173, bringing its weekly decline to 11.2%. The global cryptocurrency market capitalization currently stands at $3.31 trillion, representing a $75 billion drop, or 4.3%, over the past day.

Despite Binance’s emergency liquidity support, trading volume has surged to $148.5 billion, signaling that selling pressure remains elevated as traders move assets, seeking safety amid market uncertainty. This heightened activity suggests further downside risk as investors reassess exposure in response to the Bybit exploit.

While most cryptocurrencies remain under selling pressure, derivatives data suggests that select traders are positioning for a market recovery. Coinglass liquidation heatmaps reveal a surge in leveraged long positions on BGB, TON, and XMR, with open interest on these assets outpacing broader market trends. Futures market data shows traders accumulating long positions in these three assets despite the downturn, betting on their resilience. XMR, known for its privacy features, often sees demand rise during periods of regulatory scrutiny or hacking incidents. TON, backed by Telegram, has gained traction among retail traders, while BGB, Bybit’s native token, is drawing interest following the exchange’s swift