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Bitcoin dips below $80K as Crypto Market faces major hacks, regulatory shifts, and volatility

28 February 2025 13:57 (UTC +04:00)

As of February 28, 2025, the cryptocurrency market is navigating a series of significant events, including major security breaches, market volatility, and evolving regulatory landscapes, APA reports.

Major Security Breaches

Bybit Hack: Dubai-based cryptocurrency exchange Bybit experienced a substantial security breach, resulting in the theft of approximately $1.5 billion in Ethereum. The FBI has attributed this heist to North Korean-linked hacking groups, notably the Lazarus Group and TraderTraitor. The stolen assets are reportedly being converted into Bitcoin and other virtual currencies, potentially to fund North Korea's nuclear weapons program. Bybit's founder has pledged compensation to affected users and offered a $140 million reward for information leading to the recovery of the stolen funds.

WazirX Breach: In July 2024, Indian cryptocurrency exchange WazirX was hacked, leading to the loss of approximately $234.9 million. The attack was also attributed to the Lazarus Group, highlighting a pattern of sophisticated cybercrimes targeting cryptocurrency platforms.

Market Volatility

Price Declines: Cryptocurrency markets have experienced notable downturns. Bitcoin has fallen over 5%, trading below $80,000 for the first time since November 2024. Ethereum has also seen significant losses, with its price dropping over 40% since December 2024. This decline is partly attributed to the fading euphoria following political developments in the U.S. and the impact of recent security breaches.

Regulatory Developments

Coinbase and SEC Lawsuit: Coinbase Global and the U.S. Securities and Exchange Commission (SEC) have moved to dismiss the case against the crypto exchange, signaling a potential shift towards legislative action in regulating the crypto industry. Acting SEC Chairman Mark T. Uyeda emphasized the need for transparent crypto policy development, moving away from enforcement actions.

MEME Act Proposal: California Democrat Rep. Sam Liccardo has introduced the Modern Emoluments and Malfeasance Enforcement (MEME) Act, aiming to prevent government officials and their families from issuing or sponsoring cryptocurrencies, specifically targeting President Donald Trump's recently launched meme coin. The bill seeks to address concerns about transparency, insider trading, and foreign influence.

Cryptocurrency Prices

As of now, the leading cryptocurrencies are experiencing downward trends:

Bitcoin (BTC): $80,420.00, a decrease of 6.61% from the previous close.
Ethereum (ETH): $2,143.92, down 9.03%.
BNB (BNB): $578.35, a decline of 5.90%.
Cardano (ADA): $0.605144, down 9.40%.
Solana (SOL): $132.56, a decrease of 5.57%.

These developments underscore the dynamic and often volatile nature of the cryptocurrency market, influenced by security incidents, regulatory changes, and broader economic factors.