Bybit’s Remarkable Recovery: Liquidity Restored After Major Hack

In a testament to resilience, Bybit, the cryptocurrency exchange, has fully restored its liquidity to pre-hack levels just one month after a significant security breach. The February 2025 attack, resulting in a staggering loss of nearly $1.5 billion, initially caused widespread concern. However, according to a recent report from Kaiko, a leading crypto analytics firm, Bybit’s Bitcoin liquidity, measured by 1% market depth, has returned to its pre-attack levels of approximately $13 million per day.

While Bitcoin liquidity showed a swift recovery, altcoin liquidity on Bybit lagged slightly, reaching approximately 80% of pre-hack levels. This disparity, according to Kaiko, reflects the broader market’s risk-averse sentiment which impacted altcoins more significantly. The report emphasizes that Bitcoin, despite its inherent risk, continues to function as a safe haven asset within the cryptocurrency market.

Despite the rapid liquidity recovery, Bybit’s overall trading volumes are still recovering, aligning with broader market trends influenced by macroeconomic uncertainties. This emphasizes that the decline isn’t solely attributable to the hack itself. The exchange’s swift response, including keeping withdrawals open during the crisis, played a pivotal role in maintaining user confidence and facilitating the quick recovery.

Bybit’s Response and Industry Support

The February 21st, 2025, hack targeted Bybit’s multi-signature wallet system, resulting in the theft of $1.5 billion. Bybit CEO Ben Zhou’s decisive actions and transparent communication, emphasizing the exchange’s solvency and robust reserves, helped to quell investor fears and garner support from across the crypto industry. Competitors offered bridge loans and technical assistance, collectively working to mitigate the damage. This collective action demonstrates the strength and resilience of the cryptocurrency community.