Bitcoin holds steady above $95,000 despite turbulence in the broader crypto market following the largest exchange hack in history. The recent $1.4 billion breach at Bybit, attributed to North Korea’s Lazarus Group, has sent shockwaves across the digital asset ecosystem, triggering a wave of uncertainty and prompting urgent responses from exchanges and analysts alike.
As of Monday, the total cryptocurrency market capitalization stands at $3.25 trillion—down 3.7%—with non-Bitcoin assets dropping to $1.18 trillion. While Bitcoin remains resilient, altcoins have borne the brunt of the fallout, especially Solana-based meme coins, which lost 12.5% of their market cap within 24 hours.
Bitcoin Price Outlook: Testing the $100,000 Threshold
Bitcoin (BTC) trades at $95,563, hovering just below the psychologically significant $100,000 milestone. Despite minor daily fluctuations, BTC has maintained stability above the critical $93,572 support level. A break below this zone could signal a shift from consolidation to a bearish trend.
Daily trading volume exceeds $20 billion, reflecting sustained interest even amid market headwinds. However, momentum toward new all-time highs has stalled. One key factor: negative net flows in Bitcoin ETFs last week suggest weakening institutional appetite—or at least less organic demand than previously assumed.
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According to analysts at 10x Research, only 44% of Bitcoin ETF inflows since January 2024 represent genuine long-term buying. The remaining 56% are tied to arbitrage strategies, often used to hedge short positions in Bitcoin futures rather than reflect bullish sentiment.
“Although Bitcoin ETFs have attracted $38.6 billion in net inflows since launch, our analysis suggests that only $17.5 billion represents genuine long-only buying. The majority—56%—is likely tied to arbitrage strategies.”
This revelation tempers expectations about institutional dominance driving the next bull phase. Instead, it underscores the complexity behind ETF data and highlights the importance of distinguishing between speculative positioning and real investment demand.
Bitcoin Dominance Rises: Altcoin Season on Hold
Bitcoin dominance has climbed to 61.50%, signaling a potential delay in the much-anticipated altcoin season. Historically, altseason occurs when 75% of the top 50 altcoins outperform Bitcoin over a 90-day period—a scenario now looking unlikely in the near term.
The Altcoin Season Index currently sits at 33 out of 100, reinforcing that market capital is consolidating in Bitcoin rather than rotating into higher-risk assets. This trend aligns with risk-off behavior following major security incidents like the Bybit hack.
Several factors contribute to this shift:
- Heightened risk aversion after a major exchange breach
- Strong BTC performance relative to weaker altcoin fundamentals
- Increased institutional allocation to Bitcoin via ETFs
- Regulatory scrutiny on smaller tokens and meme coins
With investors seeking safety and clarity, Bitcoin continues to act as a digital gold proxy—absorbing capital amid uncertainty.
Bybit Hack Response: Full Asset Backing Confirmed
In a critical update, Bybit co-founder and CEO Ben Zhou confirmed that the exchange has fully closed the $1.4 billion Ether gap resulting from the Lazarus Group attack on its hot wallet. The stolen funds, primarily in ETH, were rapidly moved and laundered through decentralized platforms and meme coin ecosystems.
“Latest Update: Bybit has already fully closed the ETH gap. A new audited proof-of-reserves report will be published very soon to show that Bybit is again back to 100% 1:1 on client assets through Merkle tree. Stay tuned.”
— Ben Zhou (@benbybit), February 24, 2025
Bybit has pledged full refunds for affected users and emphasized that its reserves remain intact. The upcoming audited proof-of-reserves (PoR) report will use Merkle tree technology to verify 1:1 asset backing—an essential step in restoring trust.
This incident marks the largest crypto exchange hack on record, surpassing previous breaches like Mt. Gox and FTX in scale. Yet Bybit’s swift response may set a precedent for crisis management in decentralized finance (DeFi).
👉 See how leading platforms maintain security and transparency in volatile markets.
Solana Meme Coins Under Pressure Amid Laundering Fears
On-chain investigator @zachxbt revealed that hackers laundered portions of the stolen Ether through Solana-based meme coins on platforms like Pump.fun. Over $1.08 million was funneled across 30 wallets via Binance Smart Chain and Solana, using scam tokens initially received as “dust” drops.
More than 920 addresses linked to past Lazarus Group operations participated in these transactions, creating complex money trails designed to obfuscate origin. Notably, funds from the Bybit hack were commingled with proceeds from a prior Phemex breach—evidence of coordinated criminal strategy.
As a result, Solana meme coins collectively shed **$1.4 billion in market value**, dropping from $11.13 billion to $9.73 billion within 24 hours. Investor confidence waned as associations with illicit activity grew.
Solana (SOL) itself fell to $159.16, touching a three-month low of $155.38 during intraday trading. Technical indicators point to continued downside pressure unless strong buying emerges near current support levels.
FAQ: Understanding the Market Impact
Q: Is Bitcoin safe after the Bybit hack?
A: Yes. The hack targeted Bybit’s hot wallet, not the Bitcoin network. Bitcoin’s blockchain remains secure, and decentralized consensus mechanisms are unaffected by exchange-level breaches.
Q: Did the Lazarus Group steal Bitcoin?
A: No. The stolen assets were primarily Ethereum (ETH) and other ERC-20 tokens held in Bybit’s hot wallet. Bitcoin was not directly compromised in this incident.
Q: Can exchanges really cover $1.4 billion in losses?
A: Bybit claims full solvency and has already restored asset backing. While large, such losses are manageable for well-capitalized exchanges with proper risk reserves and insurance protocols.
Q: What is arbitrage trading in Bitcoin ETFs?
A: It involves simultaneous buying of ETF shares and shorting Bitcoin futures to profit from price differences—common among institutions but doesn’t reflect pure bullish sentiment.
Q: Will altcoins recover soon?
A: Recovery depends on restored market confidence and reduced volatility. With BTC dominance rising and regulatory scrutiny increasing, altcoin resurgence may take months.
Q: How can I protect my crypto from exchange hacks?
A: Use cold wallets for long-term storage, enable two-factor authentication, monitor account activity, and avoid keeping large balances on exchanges.
Key Takeaways and Forward Outlook
The crypto market is navigating one of its most challenging episodes in 2025—not due to macroeconomic shifts or regulatory crackdowns, but because of a high-profile cybersecurity failure.
Core keywords shaping this narrative include Bitcoin recovery, Bybit hack, Lazarus Group, crypto market capitalization, Bitcoin ETF flows, altcoin season, Solana meme coins, and exchange security.
While panic has been contained thanks to Bybit’s transparent response, the ripple effects are evident:
- Institutional trust hinges on proof-of-reserves and audit transparency
- Meme coins face reputational risks when exploited for money laundering
- True demand for Bitcoin must be separated from synthetic ETF-driven volume
Looking ahead, Bitcoin’s path to $100,000 remains intact but uncertain. Any sustained breakout will require stronger fundamentals—organic demand, clearer regulatory frameworks, and improved exchange safeguards.
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For investors, this moment reinforces timeless principles: diversification, due diligence, and prioritizing platforms with verifiable reserves and robust security infrastructure.
As the industry evolves, resilience—not just returns—will define long-term success in digital assets.