Hackers steal $1.5 billion from the exchange of Bybit, which is the biggest-ever crypto heist.
- Bybit, a significant cryptocurrency exchange, has been hit by history’s most prominent crypto heist.
- According to blockchain analytics firm Elliptic, hackers drained approximately $1.5 billion in digital assets, far surpassing previous thefts in the sector.
- The attack compromised Bybit’s cold wallet, an offline storage system designed for security.
Crypto investigator ZachXBT linked Friday’s $1.44 billion hack of crypto exchange Bybit to the infamous Lazarus Group, which has been allegedly responsible for some of the top attacks on digital asset platforms.
Additionally, Bybit CEO Ben Zhou claimed the exchange had raised nearly 80% of the stolen funds from bridge loans, encouraging users to stay calm.
Lazarus group strikes crypto again, and Bybit aims for quick recovery.
Crypto investigator ZachXBT claims that the North Korean Lazarus Group performed the Bybit attack.
According to a post by Arkham on X, ZachXBT submitted “definitive proof” that linked this recent exploitation to the Lazarus Group.
“Arkham posted on X that his report included a detailed analysis of test transactions, connected wallets used before the exploit, forensic graphs, and timing analysis. This is another successful attack on major crypto companies by the anonymous group.”
ZachXBT also responded to Arkham by saying he connected the attack to that of the Phemex exchange in January, where hackers stole $30 million.
The latest hack adds to a growing list of cyberattacks attributed to the Lazarus Group, which has orchestrated some of the largest cryptocurrency thefts in history.
Other significant incidents from the group include the $625 million Ronin Network (Axie Infinity) heist, the Atomic Wallet breach with a $100 million exodus, the $54 million CoinEx hack, and the Alphapo exploit of $60 million.
Gold rally takes a breather, still heading for eight straight weekly advance.
- Gold touches an all-time high of $2,954 amid trade policy uncertainty.
- Trump expands tariffs to lumber and soft commodities, adding market jitters.
- US data mixed: Manufacturing PMI improves, but Services PMI contracts.
Gold price slid late on Friday, poised to end the week positively, accumulating eight straight weeks of gains that pushed the yellow metal to all-time highs of $2,954. When writing, the XAU/USD trades at $2,940, down 0.15%.
The financial markets’ narrative has not changed as US President Donald Trump continues with rhetoric related to tariffs. In addition to imposing 25% tariffs on cars, pharmaceuticals, and chips, Trump has broadened duties to lumber and other soft commodities.
This fueled the rally in Bullion prices as investors seeking safety drove prices higher amidst uncertainty about US trade policies. Meanwhile, geopolitics took a second stage as there was some progress in the discussion to end the Russia-Ukraine war, which relieved the markets.
Business activity in the United States showed mixed results. The manufacturing index improved, but the services index dropped for the first time since January 2023. Additionally, existing home sales fell, and the University of Michigan’s consumer sentiment reading for February worsened.
Daily digest market movers: Gold price fails to capitalize on US yields drop
The US 10-year Treasury bond yield falls nine basis points (bps) and yields 4.416%.
- US real yields, which correlate inversely to Bullion prices, drop four basis points to 1.996%, a tailwind for Bullion prices.
- US S&P Global revealed the Manufacturing PMI in February expanded by 51.6, up from 51.2, exceeding forecasts. The Services PMI plummeted from 52.9 to 49.7.
- In February, the University of Michigan Consumer Sentiment Index dipped from 71.1 to 64.7. American consumers’ inflation expectations for one year rose from 3.3% to 4.3% as foreseen, and for five years, they are anchored at 3.5%, up from 3.2% revealed in the previous month.
- The Federal Reserve’s Meeting Minutes from Wednesday revealed that Trump’s trade and immigration policies fueled concerns over rising prices.
- The World Gold Council revealed that central bank purchases rose more than 54% year over year to 333 tonnes following Trump’s victory.
- Money market fed funds futures are pricing in 50 basis points of easing by the Fed in 2025.
XAU/USD technical outlook: Gold price faces resistance and retreats
Gold prices are trending upward, but this trend may be losing strength. The Relative Strength Index (RSI) shows buyers are becoming less active. As the RSI moves out of the overbought range, gold prices might see a setback.
The first support level to watch is $2,900. If this level is broken, sellers may aim for the swing low of $2,877 from February 14 and then the daily low of $2,864 from February 12. On the other hand, if gold prices rise above $2,954, the first resistance to consider is the psychological level of $2,950, followed by $3,000.
The Dow drops 700 points for the worst day of 2025 on new fears about economic growth.
By Brian Evans and Lisa Kailai Han, CNBC
Stocks fell on Friday after new data raised worries about a slowing economy and ongoing inflation. Investors started looking for safer places to put their money. As the day went on, losses grew as traders became uneasy about staying invested over the weekend, which might bring more news from the Trump administration. Since taking office a month ago, the administration has introduced several tariffs and other significant policy changes.
The Dow Jones Industrial Average dropped 748 points, or 1.7%, marking a two-day loss of over 1,200. This was its most significant loss of the year so far. The S&P 500 also fell 1.7%, continuing its decline after reaching a record high on Wednesday. The Nasdaq Composite decreased by more than 2%.
A release of economic data heightened concerns about the economy. This led investors to buy bonds, causing bond yields to decrease. The University of Michigan’s consumer sentiment index fell to 64.7 in January, a 10% drop, which was worse than expected. Consumers expressed worries about inflation rising from possible new tariffs. The 5-year inflation outlook reached 3.5%, the highest level since 1995. Additionally, existing home sales in the US dropped more than anticipated to 4.08 million units. A report showed that the US services purchasing managers index fell into negative territory for February.
Walmart’s shares declined for a second day after the company issued a disappointing forecast, negatively impacting the outlook for consumers and the economy.
Investor Steve Cohen commented negatively on the market and economy at a conference in Miami. He said, “It’s a period where I think the best gains have been had, and it wouldn’t surprise me to see a significant correction,” pointing to proposed tariffs that could hurt the economy along with some government cost-cutting efforts.
Popular stocks like Nvidia and Palantir saw significant losses as investors moved towards safer assets. In contrast, Procter & Gamble rose by more than 1%, while General Mills and Kraft Heinz each gained over 2%.
Overall, the S&P 500 is about 1.6% lower for the week, with the Dow and Nasdaq down 2.5% and 2.4%, respectively.
Larry Tentarelli, chief technical strategist and founder of the Blue Chip Daily Trend Report, stated, “The top 20 performers in the S&P 500 today are all from defensive sectors: consumer staples, utilities, and healthcare.” He noted that investors often shift to these sectors when concerned about economic growth.
The crypto market faces weak demand, needs Trump initiatives to kick in, JPMorgan says
- The report said the crypto market will soon lack positive catalysts.
- JPMorgan said CME’s future positioning suggests waning institutional demand.
- The bank said positive crypto initiatives by the new US administration are unlikely to occur until the second half of the year.
According to a report from JPMorgan (JPM) released on Wednesday, the cryptocurrency market is currently lacking positive news. The recent correction in crypto markets has led both Bitcoin (BTC) and Ether (ETH) futures to show backwardation, which indicates lower demand. Backwardation happens when the spot price of an asset is higher than its futures price.
According to analysts led by Nikolaos Panigirtzoglou, this situation reflects weak demand from institutional investors who use regulated CME futures contracts for these cryptocurrencies. Typically, a healthy demand for Bitcoin and Ether futures means the futures prices will be higher than the spot price, known as contango. When demand weakens and price expectations drop, the futures curve moves toward backwardation.
Several factors may contribute to this low demand. The bank suggested that positive actions from Trump’s new administration regarding cryptocurrency will likely occur in the year’s second half. This delay means institutional investors might take profits now instead of waiting for short-term catalysts. Reduced demand from systematic and momentum-driven funds, such as Commodity Trading Advisors (CTAs), has also impacted Bitcoin and Ether futures.
conclusion
This week’s financial and crypto markets have been shaken by significant developments, from the record-breaking Bybit hack to the ongoing volatility in stocks and commodities. The Lazarus Group’s continued cyberattacks highlight persistent security risks in the crypto space, while Bybit’s response demonstrates the industry’s resilience. Meanwhile, gold’s record rally and the stock market’s downturn reflect growing economic uncertainties fueled by trade policies and inflation concerns. As investors navigate these turbulent times, the focus remains on the Federal Reserve’s policy decisions, the impact of tariffs, and potential market catalysts in the months ahead.
With UltraTrader, trade smarter, not harder.
