The crypto market suffered a further decline in early trading, with the market cap declining by nearly 3% and settling at $2.84 trillion. Bitcoin (BTC) and other cryptocurrencies registered substantial declines, with fears of a further decline driving investors to safe-haven assets.
BTC is down over 3% and trading around $85,700. The flagship cryptocurrency plunged to an intraday low of $82,242 before recovering and has dropped nearly 12% over the past week.
Ethereum (ETH) fell below $2,500 after declining nearly 6% and is currently trading around $2,350. Ripple (XRP) is down almost 4%, while Solana (SOL) is marginally down as it struggles to stay above $140. Dogecoin (DOGE) is down just over 1%, while Cardano (ADA) is down 3%. Chainlink (LINK), Litecoin (LTC), Avalanche (AVAX), Toncoin (TON), Stellar (XLM), and Polkadot (DOT) also registered significant declines.
FBI Confirms North Korea Hand In Bybit Hack
The FBI has said North Korea was behind the theft of $1.5 billion worth of ETH from Bybit. The hack is described as the largest heist in history, surpassing the $1 billion stolen by Saddam Hussein from Iraq’s central bank before the commencement of the 2003 war. It also highlights North Korea’s growing capabilities in cybercrime. The FBI described the malicious activity as “TraderTraitor” and warned the assets would eventually be turned into currency.
“TraderTraitor actors are proceeding rapidly and have converted some of the stolen assets to bitcoin and other virtual assets dispersed across thousands of addresses on multiple blockchains.”
North Korea reportedly operates a sophisticated cybercrime unit called the Lazarus Group. The group is responsible for a series of audacious hacks, with the proceeds used to fund the regime’s nuclear and ballistic missile programs. North Korean-based hackers stole over $1.3 billion in crypto in 2024, with the theft spread across 47 incidents, according to data from Chainalysis. The total was a substantial increase from the $660 million stolen in 2023.
“Hackers linked to North Korea have become notorious for their sophisticated and relentless tradecraft, often employing advanced malware, social engineering, and cryptocurrency theft to fund state-sponsored operations and circumvent international sanctions.”
Cybercrime is not the only way North Korea earns foreign currency. The hermit nation has also supplied weapons, ammunition, and troops to support the Russian invasion of Ukraine in exchange for cash and technical know-how.
SEC Drops Aggressive Crypto Enforcement Campaign
The United States Securities and Exchange Commission (SEC) has dropped its aggressive crypto enforcement action, seen under former Chair Gary Gensler. Cameron Winklevoss, co-founder of Gemini, confirmed the regulator dropped its investigation into the platform without filing any charges. The regulator has already dismissed the probe against Robinhood and dropped its lawsuit against Coinbase. It also ended its investigation into Uniswap, stating it had no plans to pursue enforcement action. SEC’s withdrawal of the case against Gemini comes 699 days after the investigation began. Winklevoss stated,
“While this marks another milestone to the end of the war on crypto, which already includes the SEC’s withdrawal of the Coinbase lawsuit and the closing of investigations into OpenSea, Robinhood, and UniSwap, it does little to make up for the damage this agency has done to us, our industry, and America.”
Gemini also posted on X to inform users the SEC had dropped its investigation into the platform, stating,
“The SEC has dropped its investigation against us. This comes 699 days after the start of their investigation and 277 days after they sent us a Wells Notice. Gemini has always stood for thoughtful regulation. And we will continue to do so. Amazing awaits!”
Pectra Goes Live On Testnet
Ethereum’s highly anticipated Pectra upgrade went live on the Holesky testnet on February 24. However, it failed to finalize in the expected time. The upgrade combines 11 major Ethereum Improvement Proposals (EIPs) into a single package. The primary proposal is EIP-7702, which is expected to improve the user experience of crypto wallets. The proposal allows wallets to have limited smart contract capabilities as part of a broader strategy to bring account abstraction to Ethereum.
Another key proposal is EIP-7251, which allows validators to increase the maximum amount staked from 32 to 2048 ETH. This will help ease some technicalities validators face because any validator staking more than 32 ETH must spread the stakes across multiple validators.
Bybit Offering Cash Rewards To Online Bounty Hunters
Bybit is offering cash rewards to online bounty hunters to spot and prevent the hackers behind the hack from cashing out. CEO Ben Zhou posted a link to a new website, offering a bounty to anyone who can help track the stolen funds. The website has a live leaderboard showing companies and individuals who have located some of the stolen funds. The bounty scheme gives 5% of the sum identified to individuals who successfully persuade any company controlling the funds to freeze them and 5% to companies that take action and freeze the account. Bybit CEO Ben Zhou stated,
“We have assigned a team to dedicate to maintaining and updating this website. We will not stop until Lazarus or bad actors in the industry are eliminated.”
Crypto investment firm Elliptic described the proposal as a positive innovation that will motivate bounty hunters to track down the stolen funds.
“There are a lot of very talented blockchain investigators out there who will now be motivated to track down these stolen funds, and to help to seize them.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) registered the biggest 3-day drop since November 2022, plunging below $85,000 to a low of $81,923 on Wednesday, with tighter liquidity and weakening institutional demand contributing to the selloff. The selloff was expected, with investors disappointed over the lack of swift action from the Trump administration on tightening fiat liquidity conditions and creating a national BTC reserve. Institutional demand for BTC has also weakened, pushing the CME Futures market closer to backwardation. Analysts expect a further downside as the deadline for Trump’s tariffs on Canada and Mexico inches closer.
Noelle Acheson, author of the Crypto is Macro Now newsletter, advised buyers not to pin their hopes on Friday’s US core Personal Consumption Expenditures (PCE) index to put a floor under risk assets. The core PCE, which excludes the food and energy components, is expected to rise 2.6% year-on-year in January, lower than December’s 2.8%. Generally, slower inflation is associated with a greater probability of Fed rate cuts. However, markets could look past these metrics and focus on the uptick in forward-looking inflation metrics.
“Anyway, even if the PCE comes in softer than forecast, it could be taken as confirmation of slowing growth, sending markets into another whirlwind of concern. So, this bad mood is largely macro-driven.”
BTC is attempting a recovery during the ongoing session as it attempts to recover during a highly bearish week that saw the flagship cryptocurrency set the biggest three-day decline since November 2022. BTC registered a sharp drop last Tuesday as it fell to an intraday low of $93,407. However, it recovered from this level to reclaim $95,000 and ultimately settle at $95,663. The price recovered on Wednesday, rising just over 1% to $96,675. Buyers retained control on Thursday as BTC rose 1.75% to move past the 20-day SMA and settle at $98,364, with analysts expecting a move past $100,000. However, that changed on Friday thanks to the Bybit hack, which plunged the markets into chaos. As a result, BTC dropped over 2% to slip below the 20-day SMA and settle at $96,183.
Source: TradingView
BTC registered a marginal recovery on Saturday but fell back on Sunday, dropping to a low of $95,298 before settling at $96,320. Bearish sentiment intensified on Monday thanks to adverse macroeconomic conditions, ETF outflows, mounting liquidations, and Trump stating tariffs against Canada and Mexico will go ahead as planned in March. As a result, BTC fell nearly 5% to $91,642. BTC slipped below $90,000 on Tuesday as sellers continued to control the market, falling to an intraday low of $86,007. However, it recovered from this level to settle at $88,667, ultimately registering a drop of just over 3%. Selling pressure intensified on Wednesday as BTC suffered another crash, slipping below key levels to an intraday low of $81,923 before settling at $84,176. The current session has seen a recovery, with the price up just over 2% and trading at $85,835.
Analysts are worried that a decline could see BTC drop to $70,000, from which it could rebound. For now, the flagship cryptocurrency has found support around $82,000. The MACD and RSI are bearish, indicating a further decline for the asset.
Ethereum (ETH) Price Analysis
Ethereum (ETH) lost the crucial $2,500 level on Wednesday as bears continued to dominate following the Bybit hack. Adverse macroeconomic conditions have also taken a toll on the flagship asset as it struggles to build momentum and regain lost levels. ETH is down nearly 5% over the past 24 hours and has lost almost 14% over the week. ETH initially held firm after the Bybit hack as the crypto community debated potential resolutions and their impact on the market. Bybit reimbursed user funds and returned over 100,000 ETH to partner exchanges. However, Ethereum developers refused a rollback solution, dampening investor sentiment. It was also revealed that a portion of the stolen ETH was laundered through Solana, further damaging sentiment and raising concerns about a full recovery.
ETH registered a sharp drop on Tuesday, falling nearly 3% to an intraday low of $2,607 before settling at $2,671. Buyers returned to the market on Wednesday as ETH rose 1.67% to push above $2,700 and settle at $2,716. ETH continued to push higher on Thursday, registering a marginal increase to move past the 20-day SMA and settle at $2,739. ETH surged to an intraday high of $2,845 on Friday as buyers attempted to push towards $3,000. However, it lost momentum after reaching this level and fell nearly 3% to slip below the 20-day SMA and settle at $2,663.
Source: TradingView
Bullish sentiment returned over the weekend as ETH rose almost 4% on Saturday, moving past the 20-day SMA and settling at $2,766. Buyers retained control on Sunday, with the price increasing 1.99% to $2,821. However, market sentiment changed on Monday, and ETH dropped nearly 11% to slip below the 20-day SMA and settle at $2,517. Sellers drove the price to an intraday low of $2,322 on Tuesday, driving it below the crucial $2,500 level. ETH rebounded from this level to ultimately settle at $2,495. Bearish sentiment intensified on Wednesday as ETH plunged to a low of $2,258 before settling at $2,334. The current session sees ETH marginally up as buyers and sellers struggle to establish control. The RSI is well below the neutral zone, while the MACD flipped to bearish on Wednesday, indicating that sellers have the upper hand. If sellers continue to control the market, ETH could decline to $2,100, after which it could recover.
Solana (SOL) Price Analysis
Solana (SOL) slumped below $150 this week as bearish sentiment around the asset intensified. SOL held above $170 for most of last week despite registering a substantial drop on Monday to slip below the 200-day SMA to $177. The price continued to decline on Tuesday, falling nearly 5% to slip below $170 and settle at $169. SOL registered a marginal decline on Wednesday before rising over 4% on Thursday to reclaim $170 and settle at $176. However, it was back in the red on Friday, dropping just over 4% to slip below $170 and settle at $168. SOL recovered on Saturday, rising nearly 2% and settling at $172 before dropping 2.40% on Sunday to end the weekend at $168.
Source: TradingView
Bearish sentiment intensified on Monday as SOL dropped over 15%, going below $150 and settling at $142. Despite the bearish sentiment, SOL recovered on Tuesday, rising 1.60%, but fell back on Wednesday, declining over 6% to settle at $135. The current session sees SOL up just over 4% as buyers look to reclaim $150. SOL is currently trading at around $140.
Chainlink (LINK) Price Analysis
Chainlink (LINK) has struggled to move past the 20-day SMA, failing to move past it last Monday. Sellers took over on Tuesday, driving the price to a low of $17.29. However, LINK recovered on Wednesday, registering a marginal increase and rising nearly 2% to settle at $18.30. LINK attempted to move past the 20-day SMA on Friday as it rose to an intraday high of $19.05. It lost momentum after reaching this level, dropping nearly 5% and settling at $17.41.
Source: TradingView
LINK recovered on Saturday, rising 1.95% to $17.75, but fell back in the red on Sunday, declining 0.79% to end the weekend on a bearish note at $17.61. LINK fell over 13% on Monday as markets turned bearish, slipping below the 200-day SMA and settling at $15.26. Sellers drove the price to an intraday low of $14.08 on Tuesday. However, the price recovered from this level to register a marginal increase and settle at $15.31. The price saw volatility on Wednesday before dropping marginally to $15.25. The current session sees LINK up nearly 2% and trading at $15.54.
Hedera (HBAR) Price Analysis
Hedera (HBAR) fell to an intraday low of $0.194 on Tuesday, registering a drop of almost 2%. However, it recovered on Wednesday, rising 4.32% to $0.216. Buyers retained control on Thursday as the price rose just over 2% to $0.221. However, markets turned bearish on Friday thanks to the Bybit hack that saw $1.4 billion worth of ETH stolen. As a result, HBAR faced considerable volatility before registering a drop of 3.53% to $0.213. The price recovered on Saturday, rising nearly 2% before dropping 2.96% on Sunday to end the weekend on a bearish note at $0.210.
Source: TradingView
HBAR reached an intraday high of $0.227 on Monday as it briefly crossed the 20-day SMA. However, it lost momentum after reaching this level and fell nearly 7%, slipping below a key support level and settling at $0.197. The price plunged to an intraday low of $0.175 on Tuesday as selling pressure intensified. However, it recovered from this level to register a marginal increase and settle at $0.197. HBAR fell back on Wednesday, registering a drop of 1.21% and settling at $0.195. The current session sees HBAR up nearly 4% and trading at $0.202.
Aptos (APT) Price Analysis
Aptos (APT) has defied the market trend to register a substantial jump over the past few sessions and move past key resistance levels. APT surged past the 20-day SMA last Wednesday after registering an increase of over 12% and settling at $6.30. The price surged to an intraday high of $7.06 on Thursday as bullish sentiment persisted. However, it lost momentum after reaching this level and fell to $6.31. APT continued to decline on Friday, dropping over 5% to slip below $6 and the 20-day SMA to $5.98.
Source: TradingView
Buyers returned to the market over the weekend as APT rose 0.77% on Saturday and 1.59% on Sunday to reclaim $6 and settle at $6.12. The price dropped nearly 12% on Monday as markets turned bearish. As a result, APT fell below $6 and the 20-day SMA, ultimately settling at $5.41. Despite the overwhelming bearish sentiment in the market, APT recovered on Tuesday, rising just over 4% to $5.63. Buyers retained control on Wednesday, with the price rising nearly 5% to $5.89. The current session sees APT up almost 4% and trading at $6.13 after reaching an intraday high of $6.49.
Filecoin (FIL) Price Analysis
Filecoin (FIL) registered a substantial decline last Tuesday, falling over 6% to $3.21. However, it recovered on Wednesday, rising 3.23% to $3.32. Buyers retained control on Thursday as FIL rose over 5% to move past the 20-day SMA and settle at $3.50. However, buyers lost momentum after reaching this level, and FIL dropped 5.25% on Friday to slip below the 20-day SMA and settle at $3.31. FIL recovered on Saturday, rising 3.68% to cross the 20-day SMA to $3.43. However, it was back in the red on Sunday, registering a marginal drop and settling at $3.41.
Source: TradingView
Bearish sentiment intensified on Monday as FIL plunged nearly 12% to slip below the 20-day SMA to $3.02, just above a key support level. The price dropped to an intraday low of $2.80 on Tuesday as selling pressure intensified. However, it rebounded from this level to register an increase of almost 4% to reclaim $3 and settle at $3.14. FIL could register only a marginal increase on Wednesday but continues to push higher during the current session, with the price up over 5% and trading at $3.31.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
