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The Bybit Hacker: A New Player in the Ether Market
The Bybit hacker, believed to be a North Korean entity, has become one of the world’s largest ether holders, which may have bullish implications for the cryptocurrency’s spot price.
According to data from Arkham Intelligence and Coinbase executive Connor Grogan, this malicious actor holds 489,000 ETH, valued at approximately $1.34 billion, constituting about 0.4% of ether’s total supply, making it the 14th-largest Ether holder globally. This puts the hacker ahead of the Ethereum Foundation, Ethereum’s CEO Vitalik Buterin, and Fidelity.
It’s essential to note that the addresses linked to this entity are being closely monitored and backlisted by exchanges, which means the hacker will likely struggle to offload these coins in the market.
In simpler terms, the hacked ether supply is likely lost permanently. Furthermore, Bybit, which has reportedly secured a bridged loan from unnamed partners to cover nearly 80% of the ether lost in the Friday hack, will likely need to purchase coins in the market.
“As far as this supply is concerned, it’s essentially gone. No OTC desk or exchange will facilitate the movement of such a large amount. Meanwhile, Bybit is short 402k ETH. The bridge loan may cover immediate needs, but purchasing will still be necessary,” Vance Spencer, co-founder of the crypto VC firm Framework Ventures, said on X.
That probably explains why ether has bounced 2.6% to $2,730 from the overnight low of around $2,614. Funding rates in perpetual futures tied to ether remain positive, implying a bias for long positions, according to data source Coingecko.
Implications for the Ether Market
The recent events have significant implications for the ether market. With the hacker holding a substantial amount of ether, the supply of the cryptocurrency in the market may decrease, potentially leading to increased demand and higher prices. Additionally, the fact that Bybit is short 402k ETH and may need to purchase coins in the market could also contribute to the upward pressure on the price of ether.
However, it’s essential to note that the addresses linked to the hacker are being closely monitored and backlisted by exchanges, which may limit the hacker’s ability to offload the stolen ether. This could ultimately lead to the supply of ether being lost permanently, which could have a negative impact on the market.
FAQs
- Who is the Bybit hacker? The Bybit hacker is believed to be a North Korean entity.
- How much ether does the hacker hold? The hacker holds 489,000 ETH, valued at approximately $1.34 billion, constituting about 0.4% of ether’s total supply.
- What are the implications for the ether market? The recent events have significant implications for the ether market, including a potential decrease in supply, increased demand, and higher prices.
- Why is the hacker struggling to offload the stolen ether? The addresses linked to the hacker are being closely monitored and backlisted by exchanges, making it difficult for the hacker to offload the stolen ether.
- What is a bridged loan? A bridged loan is a type of loan that allows an entity to borrow funds to cover a specific need, in this case, to cover the loss of 402k ETH.
- What is the current price of ether? The current price of ether is $2,730, after bouncing 2.6% from the overnight low of around $2,614.
Conclusion
The recent events surrounding the Bybit hack have significant implications for the ether market. The hacker’s large holding of ether, combined with Bybit’s need to purchase coins in the market, could lead to increased demand and higher prices. However, the addresses linked to the hacker being closely monitored and backlisted by exchanges may limit the hacker’s ability to offload the stolen ether, ultimately leading to the supply being lost permanently. As the situation continues to unfold, investors and market participants should closely monitor the developments and adjust their strategies accordingly.
