Bybit Exchange Bitcoin Liquidity Rebounds After February Security Breach
Bitcoin liquidity on Bybit has rebounded to pre-security breach levels following a significant hack in February 2025. A report from Kaiko indicates that the exchange has regained confidence and market depth.
Key Events
- On February 21, 2025, Bybit suffered a security breach, losing over 400,000 ETH valued at approximately $1.5 billion.
- The FBI identified the Lazarus Group as responsible for the theft.
- Post-hack, user confidence declined sharply, leading to over 350,000 withdrawal requests and reduced trading activity.
- Market depth for Bitcoin dropped to 0.1% after the incident but rose back to around 8% by March.
- Bybit regained 7% of its market share and enhanced security measures through a partnership with Zodia Custody.
- A global trade conflict in March and April exerted additional pressure on crypto markets.
Liquidity Recovery Details
- Retail Price Improvement (RPI) orders launched just before the hack contributed to stabilizing prices.
- Altcoin liquidity is recovering slower, with top 30 altcoins regaining over 80% of their previous market depth.
- Competitors like HTX, Bithumb, and MEXC reported double-digit liquidity declines in March.
- Bybit's market depth increased by 30%, showcasing resilience compared to peers.
- 68.5% of the stolen funds are traceable; over 84% of the hacked ETH has been converted to Bitcoin.