The week starts with a downturn for the crypto market. Major tokens like Ethereum and Solana are plummeting. Even Bitcoin is not spared from losses.
Bybit Exchange Hack
The crypto market has shed $400 billion since last Friday’s close. A major factor in the plunge is a $1.4 billion hack at the Bybit exchange on February 21, marking the largest hack in history with nearly 500,000 ETH stolen.
Market Reaction and Consequences
Ethereum has fallen more than 16% since the hack, despite Bybit's attempt to repurchase lost ETH on the market. XRP is down 16%, and Solana over 21%, dragging Bitcoin down by 7%.
Bitcoin's Steadfast Position
Despite the overall slump, Bitcoin remains relatively resilient. This is attributed to not only high inflation but also the rejection by several US states to create Bitcoin reserves.
It remains unclear how the situation will unfold, but market participants continue to watch closely for movements by major players and macroeconomic news.
