Bitcoin News: Bybit Hackers Allegedly Use Crypto Mixers to Launder $1.4 Billion in Stolen Funds

In a recent development in the cryptocurrency world, a major hack has shaken the Bybit crypto exchange, with hackers believed to be the North Korea-linked Lazarus Group making moves to launder the stolen funds. Here`s a closer look at what`s happening.

Bybit Hackers Likely Moving Stolen Funds to Mixers

A blockchain security firm, Elliptic, revealed that hackers, believed to be the North Korea-based Lazarus Group, are moving stolen funds from the Bybit crypto exchange to crypto mixers. The hackers aim to convert the stolen digital assets, estimated at $1.4 billion, into Bitcoin to obfuscate the transaction trail and launder the funds. Elliptic believes the use of mixers is part of the hackers` attempt to make it harder to trace the transactions.

MicroStrategy Invests Additional $2B in Bitcoin Despite Free Fall

MicroStrategy, led by billionaire Michael Saylor, has invested an additional $2B in Bitcoin (BTC), purchasing 20,356 BTC at $97,514 per BTC. This raises the company’s total BTC holdings to 499,096, valued at $46B with a 39% profit. The recent purchase comes despite BTC’s drop from $95K to $86K due to dwindling sentiment, partially attributed to the Bybit hack on February 21. Saylor’s investment may revive market sentiment and help BTC recover.

Bitcoin Traders `Buy the Dip` as BTC Price Slips Below $88K

Traders are buying Bitcoin (BTC) on Kraken, one of the 10 biggest cryptocurrency exchanges, as the price slides to a three-month low. BTC dropped under $88,000 amid risk-off sentiment on Wall Street. The long-short ratio has improved to a record 0.8 on the exchange. The decline follows a $1 billion increase in open futures positions on Binance, likely due to traders taking shorts anticipating a deeper price drop.

Arthur Hayes Predicts BTC to Fall to $70K Due to ETF Arbitrage

Arthur Hayes stated that large hedge funds engaged in ETF arbitrage are exiting their positions, putting selling pressure on Bitcoin. He explained that many IBIT holders are hedge funds that bought ETFs and sold CME futures for higher yields. As BTC falls, these funds may sell IBIT and buy back CME futures, leading to potential large outflows from spot BTC ETFs like the BlackRock iShares.

Bitcoin Retail Demand Rebounds

The dedicated interest of retail Bitcoin investors is recovering, as the 30-day demand indexes have reached the neutral point near 0% levels. Analysis from Darkfost shows a notable turnaround in retail investor demand metrics, restoring a different trend from the former steep drop of -21% that hadn`t been reached since 2021. The market shows evidence of reconstructed investor activity, indicating smaller traders are showing interest in BTC after extended market instability. Notably, past instances of recovering retail demand have often coincided with upward price movements in the short-term.