Ethereum’s price has jumped 2.3% in the last 24 hours following reports of cryptocurrency exchange Bybit’s significant ETH purchases. This move comes in response to a recent $1.5 billion hack by the Lazarus group.
Bybit has transferred 100 million USDT to new addresses, with half allocated for purchasing 36,900 ETH over-the-counter. This strategic move demonstrates the exchange’s commitment to recovery and market stability.
Market Impact and Supply Dynamics
The hack has created an interesting supply dynamic in the Ethereum market. The Lazarus group now holds 489,000 ETH, approximately 0.4% of the total supply. However, these tokens are effectively locked due to extensive blacklisting by major exchanges.
This situation has created a unique supply squeeze. With 0.4% of ETH supply essentially removed from circulation, the remaining liquid supply has decreased. This reduction could support higher prices in the medium term.
Exchange Response and Security Measures
Bybit’s CEO Ben Zhou has reassured users about the exchange’s financial stability. The platform maintains a cold wallet containing nearly $3 billion in USDT, far exceeding the stolen amount.
The cryptocurrency community has implemented robust tracking measures. Major exchanges now monitor the hacked addresses closely. This coordinated response showcases the industry’s improving security infrastructure.
Market Outlook
The current situation presents several bullish indicators for Ethereum:
- Reduced circulating supply due to locked stolen funds
- Institutional buying pressure from Bybit’s recovery efforts
- Demonstrated resilience of major exchanges to security threats
The broader market shows mixed signals, with Bitcoin down 0.3% while the CoinDesk 20 Index has risen 0.76%. This divergence suggests that Ethereum’s price movement is primarily driven by this specific event rather than overall market sentiment.
Tags: Ethereum, Bybit, Cryptocurrency Security, Market Analysis, DeFi
Source: CoinDesk