Bitfinex analysts have written that Bybit’s announcement of a complete recovery could be a silver-lining to the price of Ethereum.
Hackers believed to be members of the North Korean terrorist group Lazarus stole $1.5 billion worth of Ethereum.ETH) Bybit, a crypto exchange, last week began selling Ether derivatives.
The Bybit hack and the subsequent volatility in the market caused Ethereum’s price to fall further. Social media was flooded with discussions about the impact of the hack, but Bitfinex analyst believe Ether could gain from the incident.
“If Bybit needs to replenish customer funds, they may be forced to buy back large amounts of ETH,” Bitfinex Alpha Market: What analysts have to say report.
Bybit lost Over 400,000 ETH was taken from the cold wallet on Friday. Ben Zhou, CEO of Bybit said that the exchange covered all losses by the 24th February. Zhou has also released a audit on the reserves in order to restore public confidence.
Lookonchain Data showed The platform purchased ETH, received loans from the bridge partners and large deposits from whales. ETH is available on the public market as well as through various other channels. “could counteract some of the selling pressure and even drive prices higher,” Bitfinex analysts have written.
Bitfinex: Ethereum and most other cryptos are in a correction phase
Analysts at Bitfinex stressed that Ethereum’s price potential recovery was only possible due to Bybit’s market activity. According to the report, most of the major cryptos are still in a phase of correction. The digital asset market as a whole is highly volatile.
“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 stated.
The monthly crypto open interest has also fallen as traders reduce leveraged positions “in response to a combination of weaker market momentum and increasing uncertainty,” According to analysts, Bitfinex believes that macroeconomic clarity is likely to determine Bitcoin’s next big move (BTC() and the wider crypto market.
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Source: crypto.news
