Image courtesy of News.az
The global cryptocurrency market experienced a significant decline by February 22, 2025, losing around $200 billion in market value, as reported by News.Az via Nairametrics. The total market value plummeted from $3.37 trillion to $3.17 trillion, marking a 5.93% decrease.
Major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) were notably affected. Bitcoin traded at $96,566, reflecting a 1.11% weekly loss and an 11.26% decline from its all-time high of $108,786 on January 20, 2025. Ethereum lost 15.5% of its value, trading at $2,734.24, which is a 43.95% drop from its peak of $4,878.26.
The bearish trend also impacted altcoins, including Binance Coin (BNB), which suffered significant losses. The primary cause of this market downturn was a major security breach at cryptocurrency exchange Bybit, where 401,346 ETH (worth $1.4 billion) were stolen, marking it as the largest crypto theft in history. This incident led to panic selling, with over $544 million worth of positions liquidated within 24 hours, according to data from Coinglass.
Current market performances indicate Bitcoin’s market dominance remains robust at $1.91 trillion, accounting for 60.1% of the total cryptocurrency market, while Ethereum holds $330.22 billion (10.3%). Stablecoins like USDT, USDC, and TUSD collectively maintain $214.51 billion (7%), while other cryptocurrencies account for $727.95 billion (23%).
Despite widespread losses, some cryptocurrencies recorded impressive gains above 50% between February 16 and February 22, 2025. Major gainers included Story (IP): +166.80%, Sonic (S, previously FTM): +62.10%, and Maker (MKR): +52.40%. Conversely, top losers included Raydium (RAY): -15.8%, Official Trump (TRUMP): -14.46%, and Jupiter (JUP): -12.51%.
The Market Fear and Greed Index dropped to 38 this week from 41, indicating a shift from greed to fear, reflecting growing uncertainty among investors. Bitcoin’s dominance slightly increased to 60% from 59.7%, suggesting a move towards BTC as a safe haven amid market fears. Furthermore, the Bybit hack has been linked to the Lazarus Group, a North Korean cybercriminal organization.
Image courtesy of CoinGape
Bybit Hack and Market Reactions
The recent hack of cryptocurrency exchange Bybit has sent shockwaves through the crypto community. The breach resulted in $1.4 billion in ETH being drained, causing panic among investors. According to CoinGape, this led to a liquidation of approximately $566 million in a single day, reversing recent gains for BTC and other altcoins.
In response to the hack, Bybit has announced a $140 million bounty for cybersecurity experts to aid in the recovery efforts. The security breach has heightened concerns in the crypto market, leading to stagnant prices for BTC and other altcoins as investors grapple with the implications of the hack.
Ethereum Community Split Over Rollback Proposal
Image courtesy of CoinGape
The Ethereum community is currently divided over a proposal for an on-chain rollback following the Bybit hack. Some industry stakeholders advocate for this rollback, referencing Ethereum’s 2016 hardfork after the DAO hack. BitMEX co-founder Arthur Hayes supports the idea, suggesting it would prevent North Korean hackers from utilizing the stolen assets.
Conversely, others in the community argue against the rollback, emphasizing the potential damage to Ethereum’s credibility. Pseudonymous trader Borovik stressed the risks, stating, “A rollback can only happen if you split the chain. Ethereum’s reliability and neutrality would be at risk.” This sentiment is echoed by Bitcoin proponents who highlight the differences between the Bybit incident and past events.
As the debate continues, the Ethereum community faces a critical decision regarding the future of the network amidst increasing concerns over security and credibility.
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