The cryptocurrency market faced renewed turbulence on February 22 as Bitcoin (BTC), Ethereum (ETH), and major altcoins declined sharply following a massive security breach at Bybit and widespread liquidations. Over $566 million in positions were wiped out across the market in just 24 hours, triggering a wave of panic selling and eroding investor confidence as the week drew to a close.
At the center of the storm was the revelation that Bybit, one of the world’s largest crypto exchanges, suffered a $1.4 billion Ethereum (ETH) hack. According to reports, the cyberattack was attributed to The Lazarus Group, a North Korean state-linked hacking collective known for high-profile exploits in the digital asset space. The stolen funds—primarily in ETH—have sent shockwaves through the market, amplifying fears of potential sell pressure if the hackers begin offloading assets.
Market-Wide Impact: Liquidations and Losses
Data from Coinglass revealed that total liquidations reached $566.64 million** in the past day, with long positions bearing the brunt of the downturn. The broader crypto market cap contracted by **1.98%**, settling at **$3.17 trillion, reflecting heightened volatility and risk-off sentiment.
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Bitcoin Retreats to $96,000
Bitcoin, the flagship cryptocurrency, dropped nearly 2% to trade around $96,170**, retreating from recent highs near $99,500. The intraday range saw BTC dip as low as $94,852** before recovering slightly. Over **$199.44 million** in BTC long positions were liquidated, underscoring leveraged traders’ vulnerability during sudden price drops.
Despite the pullback, Bitcoin’s market dominance remained strong at 60.29%, indicating its continued role as a benchmark amid sector-wide uncertainty.
Ethereum Slides Below $2,700
Ethereum followed a steeper downward path, shedding nearly 3% to $2,674**. With a 24-hour range between **$2,616 and $2,842**, ETH faced significant selling pressure. Approximately **$141.76 million in ETH positions were liquidated, raising concerns about further downside if the stolen ETH from Bybit enters the market.
Given that the compromised funds are denominated in Ethereum, traders are closely monitoring on-chain activity for signs of movement from the hacker-controlled wallets. Any large-scale dumping could trigger additional volatility.
Major Altcoins Follow Bearish Trend
The downturn was not isolated to BTC and ETH—most major altcoins posted losses:
- XRP fell 3% to $2.57**, with **$14.95 million in liquidations. The coin traded between $2.51 and $2.71 during the session.
- Solana (SOL) dipped 2% to $170**, hitting a low of $167.31. It recorded $22.24 million** in liquidations amid declining meme coin activity on its network.
- Dogecoin (DOGE) dropped 4% to $0.2417**, with **$14.03 million liquidated—among the highest in the meme coin segment.
- Shiba Inu (SHIB) declined 2% to $0.00001516, mirroring broader market trends.
- Other meme tokens like Pepe (PEPE) and TRUMP also fell between 2% and 5%, reflecting reduced speculative appetite.
Unexpected Gainers Amid the Downturn
Despite the bearish environment, some projects defied the trend, posting notable gains:
Ethena (ENA) Jumps 11%
Ethena’s native token, ENA, surged 11% to $0.4544, emerging as one of the top gainers. The rally followed reassurances from the project team that its dollar-backed synthetic yield token, USDe, remains fully collateralized and unaffected by the Bybit incident. Investor confidence in Ethena’s resilient architecture appears to be strengthening.
Bitget Token (BGB) Rises 8%
BGB, the native token of exchange Bitget, climbed 8% to $5.05. Analysts attribute the rise to increased platform activity as traders seek alternative venues amid Bybit’s security crisis. Bitget also launched a limited-time on-chain staking program for BGB, boosting demand.
Jito (JTO) Gains 5%
JTO rose 5% to $2.84 after South Korea’s Upbit exchange announced plans to list the token in its KRW trading pair. The news sparked buying interest from Asian markets, reinforcing JTO’s status as a leading liquid staking solution on Solana.
Top Losers Highlight Sector Weakness
Not all projects weathered the storm:
- Mantle (MNT) plunged 15% to $0.883, hit by profit-taking and reduced protocol activity.
- Berachain (BERA) dropped 12% to $7.16, despite strong fundamentals, as investors de-risked exposure to newer layer-1 chains.
- Sonic (S) lost 10%, trading at $0.8546, amid broader concerns about emerging blockchain ecosystems.
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Frequently Asked Questions (FAQ)
Q: What caused the recent crypto market drop?
A: The decline was primarily triggered by a $1.4 billion ETH hack on Bybit, which led to over $566 million in liquidations and widespread panic selling across BTC, ETH, and altcoins.
Q: Who hacked Bybit and stole $1.4 billion?
A: Preliminary reports link the attack to The Lazarus Group, a North Korean cybercrime syndicate with a history of targeting cryptocurrency platforms.
Q: Could the stolen ETH affect Ethereum’s price further?
A: Yes. If hackers begin selling the stolen ETH, it could create significant downward pressure on the price. Traders are monitoring blockchain wallets for any signs of movement.
Q: Why did some tokens like ENA and BGB go up during the crash?
A: ENA gained due to confidence in its stablecoin mechanism, while BGB benefited from increased platform trust as users migrated from affected exchanges.
Q: How can traders protect themselves during high-volatility events?
A: Reducing leverage, using stop-loss orders, diversifying holdings, and staying informed through reliable sources can help mitigate risks during market shocks.
Q: Are crypto exchanges safe after incidents like the Bybit hack?
A: While no system is immune, reputable exchanges with strong security protocols, cold storage reserves, and insurance funds offer greater protection. Always practice due diligence.
Final Outlook
The crypto market remains in a fragile state as investors digest the implications of the Bybit hack and escalating liquidations. While Bitcoin and Ethereum continue to anchor the ecosystem, short-term sentiment is bearish, driven by fear of further sell-offs from stolen funds.
However, opportunities emerge even in downturns—projects like Ethena and Bitget demonstrate resilience and adaptability, attracting attention amid chaos. As always, staying informed, managing risk, and using secure platforms are essential for navigating turbulent waters.
With regulatory scrutiny increasing and cyber threats evolving, the importance of robust exchange security and transparent protocols cannot be overstated. The coming days will be critical in determining whether the market can stabilize or face deeper corrections.
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