Bybit’s $1.5 Billion Hack and Its Potential Impact on Bitcoin’s Price in 2025

Bybit’s recent $1.5 billion hack has shaken the cryptocurrency industry, leading to widespread concerns over security vulnerabilities and market stability. In the immediate aftermath, Bitcoin (BTC) fell over 5%, slipping below $80,000 for the first time in months. But what does this mean for Bitcoin’s long-term trajectory in 2025?

Historically, major exchange hacks have had short-term bearish effects on Bitcoin’s price, as seen in the Mt. Gox and FTX collapses. However, unlike those instances, Bybit remains solvent and has assured users that customer funds are intact, mitigating panic-driven selloffs. That said, the implications of this attack extend beyond Bybit itself.

The FBI has confirmed North Korea’s involvement, identifying Lazarus Group as the perpetrators. This aligns with previous crypto heists linked to state-sponsored cybercrime, raising new concerns about how secure centralized exchanges really are. Institutional investors, many of whom have entered the market via Bitcoin ETFs, are now questioning the risks of centralized crypto custody, potentially influencing capital flows into decentralized alternatives.

Market indicators suggest an increasing bearish sentiment among traders. Open interest in put options at $70,000 has spiked, signaling expectations of a deeper correction. Additionally, liquidity across exchanges has thinned, meaning price swings could be more extreme in either direction. If confidence in crypto security erodes further, we could see Bitcoin test lower support levels.

Yet, there are reasons to remain cautiously optimistic. On-chain metrics remain strong, with Bitcoin’s network fundamentals—hashrate, long-term holder supply, and exchange outflows—indicating resilience. Furthermore, Bitcoin’s dominance over the broader crypto market has continued to rise, a sign that investors still see it as the safest asset within the ecosystem.

While short-term volatility is likely, Bitcoin’s long-term value proposition remains unchanged. However, regulatory responses to the Bybit hack may determine how quickly investor confidence is restored. If this incident accelerates stricter security mandates for exchanges, it could create a more stable trading environment—potentially paving the way for Bitcoin to regain bullish momentum by the second half of 2025.