417K ETH converted into BTC – Why the next few days could shape market volatility

• Some of the stolen Bybit funds are traceable, while others have vanished into untraceable channels
• In the meantime, the crypto community remains on high alert.

The infamous Bybit hack triggered a major FUD moment across the crypto market. 

A total of $1.4 billion (around 500,000 ETH) was compromised, with 77% still traceable, 20% gone dark, and 3% frozen. Here’s a breakdown of how the funds have been moved.

A breakdown of the hacked funds

Out of the $1.4 billion stolen in the hack, a thorough analysis uncovered the following key insights – 77% of the stolen funds remain traceable, providing some hope for recovery. 

However, 20% of the funds have disappeared from the radar, making them exceedingly difficult, if not impossible, to track. On a more positive note, 3% of the funds have already been succes**ully frozen.

The hacker employed a series of sophisticated techniques to move and obscure the stolen assets. Hackers rapidly converted a substantial 417,348 ETH into Bitcoin across 6,954 wallets, averaging 1.71 BTC per wallet.

The sheer volume of Ethereum [ETH] converted into Bitcoin is likely to have a significant impact on BTC’s market liquidity. This large-scale conversion could increase the supply of Bitcoin on exchanges.

With uncertainty surrounding BTC’s next move, this influx of liquidity could intensify market volatility in the coming days.

Potential for ETH/BTC volatility

The Bybit hack has set the stage for a turbulent period in the crypto market. The movement of $1.4 billion in compromised funds – particularly the massive conversion of ETH into Bitcoin – will create a significant ripple effect on market liquidity.

For one, with funds distributed across 6,954 wallets, transactions could spread across multiple exchanges, increasing the complexity of tracking the funds.

On top of that, there’s growing tension over the lack of confirmation of Trump’s pro-ETH/BTC positon. Critics are already speculating that it could be part of a broader market manipulation strategy, stirring doubts among investors.

Moreover, ETH reserves, after hitting a yearly low, are now beginning to rise again, which only adds fuel to the fire. In this climate of heightened tension, absorbing the sell-side liquidity will be anything but straightforward.

Tread carefully! Traders and investors will need to navigate a volatile landscape, where sudden moves can trigger sharp market reactions in the coming days.