Bitcoin is holding its ground near $96,000 after a turbulent week dominated by the largest cryptocurrency exchange hack in history. The flagship digital asset trades at $96,390, showing remarkable resilience in the face of one of the most significant security breaches the crypto industry has ever witnessed.
TL;DR
- Bybit fully covered the $1.4 billion Ether gap after suffering the largest crypto exchange hack in history, linked to North Korea’s Lazarus Group
- Bitcoin defends the $96,000 support level as market participants weigh the fallout from the Bybit exploit
- Spot Bitcoin ETFs attracted $4.3 billion in inflows during Q1 2025, demonstrating sustained institutional demand
- Analysts identify $93,000 as a critical support zone, with $106,000 as the next major resistance target
- Market sentiment remains cautiously optimistic despite heightened volatility following the hack
Bybit’s Historic Recovery Effort
The cryptocurrency exchange Bybit announced that it has fully closed the Ether gap created by last Friday’s devastating hack, which saw roughly $1.4 billion worth of ETH drained from the platform. CEO Ben Zhou confirmed on social media that the exchange is “back to 100% 1:1 on client assets through Merkle tree” and that an audited proof-of-reserves report would follow shortly.
The attack, which on-chain analysts attributed to North Korea’s notorious Lazarus Group, resulted in the biggest heist from any crypto exchange to date. Hackers managed to drain approximately 70% of the exchange’s clients’ Ether holdings, triggering a massive withdrawal surge totaling over $6.1 billion in customer funds.
According to blockchain analytics firm Lookonchain, Bybit received 446,870 ETH — worth around $1.23 billion at the time — through a combination of loans, whale deposits, and direct purchases. Of this amount, 157,660 ETH worth approximately $437.8 million was acquired from crypto investment firms Galaxy Digital, FalconX, and Wintermute through over-the-counter transactions. An additional $304 million in Ether was purchased from centralized and decentralized exchanges.
The breach was linked to Safe, a decentralized custody protocol that offers smart contract wallets. Zhou stated the cause was “definitely around the Safe cold wallet,” though the exact vulnerability remained unclear. Safe temporarily shut down its smart wallet functionalities following the incident, adding to withdrawal concerns before coordination restored normal operations.
Bitcoin Price Finds Its Footing
Bitcoin’s ability to maintain the $96,000 level after the Bybit shock signals underlying market strength. The cryptocurrency has been range-bound for weeks, oscillating between support at $93,000 and resistance near $100,000. The $96,000 zone has emerged as a crucial pivot, with bulls defending it against multiple tests.
Technical analysts point to a falling wedge pattern forming on daily charts, typically indicative of a bullish reversal. The wedge’s support aligns near $96,000, while the resistance line sits at $106,000. A breakout above this pattern could validate optimistic forecasts and push Bitcoin toward new highs. Conversely, a loss of the $96,000 support could trigger a selloff toward the $85,500 level.
Open interest data reveals increasing market participation, with positions building as Bitcoin climbed from $96,000 toward $99,000 before the hack-induced flash crash sent prices briefly to $94,000. The market has since recovered, with buying pressure gradually returning as the initial panic subsides.
Institutional Inflows Remain Strong
Despite the turbulence, spot Bitcoin ETFs continue to attract significant institutional capital. ETFs pulled in $4.3 billion during Q1 2025, compared to $4.8 billion in the same period of 2024, underscoring that large investors remain committed to their Bitcoin exposure regardless of short-term volatility.
Industry voices encourage investors to view the current consolidation as an opportunity rather than a cause for alarm. Edu Patel, Founder and CEO of Mudrex, noted that regulatory developments such as the SEC’s crypto task force and pending ETF approvals suggest substantial upside remains in the current cycle. Market participants are closely watching the $93,000 support level, which has been tested multiple times, with each retest potentially weakening its strength.
Why This Matters
The Bybit hack tested the crypto market’s resilience at a critical juncture, and Bitcoin’s ability to hold above $96,000 despite the shock reinforces the asset’s maturation. The speed at which Bybit covered its $1.4 billion gap also demonstrates improved crisis response capabilities across the industry. With institutional inflows continuing and technical patterns suggesting potential upside, the market appears to be digesting the bad news without capitulating — a sign that the broader bullish structure remains intact.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
bybit covering 1.4B in a week while binance took months for much less. respect to ben zhou for not disappearing
6.1 billion in withdrawals and they survived. any other exchange would have folded. the merkle tree proof of reserves better be legit tho
lazarus group again. how many billions have they stolen now? someone needs to track where that 437M in ETH from crypto investors actually went