Sell-off in cryptocurrencies amid suspected hack of ByBit hotwallet 🔔💣

The crypto market is witnessing a wipeout of strong gains from the first part of the day, returning to a downtrend. The situation is extraordinary, and the scale of the sell-off is significantly larger than in the stock market, which is also experiencing declines.

Initial speculation suggests that there may have been a hack targeting one of ByBit Official’s hot wallets, leading to the theft of nearly $1.4 billion in Ethereum. The funds were immediately transferred to another address and are currently being liquidated.

The reaction may be short-lived, as these are not substantial sums in the broader market context. However, the broader market declines indicate mild investor panic, further fueled by weaker sentiment in the U.S. stock market.