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Ethereum Bounces Back as Bybit ‘Closes Gap’ on Hack Losses
The Ethereum (ETH) market has shown signs of recovery after a significant slump following the massive hack of cryptocurrency exchange Bybit. The asset’s price fell by 7% within hours, plummeting from $2,832 to $2,629. However, it appears that Bybit’s efforts have led to a “gap” being closed, as the company has reportedly bought back enough ETH to cover its losses.
The initial slump saw ETH fall below the previously established psychological support levels of $2,800 and even $2,700. Despite this, the asset found support at around $2,740 during Monday’s Asian session, suggesting that it may have hit a bottom.
ETH has been trading within a narrow range since February, having shown little signs of breaking out above $3,000 despite being historically bullish for the month. It has struggled to surpass previous resistance levels around $2,800 and failed to hold support above $2,600.
The recent recovery is likely attributed to Bybit’s swift action in buying back Ethereum assets worth approximately $1.4 billion. According to reports, the exchange has received around 446,870 ETH through loans, whale deposits, and direct purchases since the hack. This significant purchase would have contributed to a substantial increase in the asset’s supply, thus reducing its scarcity.
Bybit’s CEO, Ben Zhou, took to Twitter to confirm that the company has “already fully closed the gap” on the hack losses, providing some much-needed relief for investors. The news has had a positive impact on market sentiment, with Ethereum’s price bouncing back from the recent lows.
In light of this development, we can expect the asset’s price outlook to be re-evaluated in the coming days. While it is still unclear whether ETH will continue its upward momentum or consolidate at current levels, one thing is certain – Bybit’s swift action has injected a sense of stability into the market.
With this information in mind, it seems that Bybit’s efforts have effectively put the recent hack losses behind them, paving the way for potential future growth.
Source: https://cryptopotato.com/ethereum-bounces-back-as-bybit-closes-gap-on-hack-losses/
