The cryptocurrency market is experiencing significant turbulence, with Bitcoin being the most affected as it falls below $85,000. This downturn is attributed to several factors, including a historic hacking incident at the Bybit platform and growing economic tensions worldwide.
On February 21, 2025, Bybit, one of the leading cryptocurrency exchanges based in Dubai, was the victim of a cyberattack that resulted in the theft of approximately $1.5 billion in Ethereum. This event, considered the largest theft in cryptocurrency history, was carried out by the North Korean hacking group known as Lazarus. According to the FBI, the hackers began converting the stolen assets into Bitcoin and other virtual currencies, dispersing them across multiple addresses on various blockchains.
In addition to the impact of the hacking incident, recent economic policies have also affected investor confidence. The administration of President Donald Trump announced tariffs of 25% on imports from Canada and Mexico, raising concerns about a potential trade war and its effects on the global economy. This uncertainty led investors to shy away from higher-risk assets, such as cryptocurrencies.
As a consequence of these events, Bitcoin has experienced a 20% decline from its all-time high of $107,180 in January 2025, currently trading around $84,184. This bearish trend has dragged down other cryptocurrencies, such as Ethereum and Solana, which have recorded significant losses in recent weeks.
Despite the magnitude of the hacking incident, Bybit has assured its users of the company's solvency and that all customer assets are backed on a 1-to-1 basis. The platform is collaborating with blockchain analysis experts to track the stolen funds and has launched a reward program to incentivize the recovery of the stolen assets.
This incident underscores the persistent security challenges within the cryptocurrency ecosystem, highlighting the need to implement stronger measures to protect investors' digital assets.
