🚀 Markets Shaken: Bybit Hack, BTC Breakdown & Trump

Contents

• The Wrap Up
• Overview in This Market
• Movement in the Top 8
• This Week’s Narrative
• Key Advancements
• DeFi Brief
• Memes in Motion
• Airdrop Buzz
• The Wrap Down

The Wrap Up

The crypto markets faced intense volatility this week following a $1.5 billion Bybit hack, which sent shockwaves through the ecosystem. As markets attempted to stabilize over the weekend, a sharp downturn in traditional equities pulled crypto lower, causing Bitcoin to break its three-month consolidation range.

Institutional interest remains firm, with Michael Saylor’s MicroStrategy accumulating over 20,000 BTC, while Franklin Templeton pushed forward with a Solana ETF including staking. Meanwhile, Trump’s Strategic Crypto Reserve has sparked debates over the U.S. government's long-term position on digital assets.

DeFi and memecoins had mixed performances, but select altcoins showed resilience.

What This Means & The Impact:

The Bybit hack underscores security risks in centralized exchanges, while BTC’s breakdown signals potential further downside. However, institutional accumulation and policy shifts—especially the emerging discussion on Trump’s Strategic Crypto Reserve—suggest crypto is playing an increasingly significant role in governmental and macroeconomic strategies.

Overview in This Market

Markets started the week on a bearish note with the Bybit hack, but things worsened as traditional markets plunged, dragging crypto down with them.

• Total Market Cap: Fell 13.2% from $3.362 trillion to $2.917 trillion
• Bitcoin (BTC): Closed down 13.58%
• Ethereum (ETH): Underperformed BTC, closing 15.99% lower

Liquidations:

• $2.3 billion in long liquidations early in the week
• $400 million in short liquidations
• Liquidations slowed, hinting at a cleared leverage excess

Funding Rates:

• Mostly flat, with a slight uptick in BTC & ETH

Key Headlines

• Michael Saylor’s MicroStrategy buys 20,356 BTC ($1.99 billion) at an average price of $97,514
• Franklin Templeton files for Solana Spot ETF with staking
• Coinbase & SEC dismiss litigation, ending years of legal battles
• Trump’s Strategic Crypto Reserve proposal raises questions on potential U.S. governmental BTC reserves

What This Means & The Impact:

The sharp BTC drop erased weeks of gains, and with traditional markets under pressure, crypto remains vulnerable to macro trends. However, institutional accumulation and Trump’s discussion on a strategic Bitcoin reserve suggest a growing governmental and institutional shift toward long-term crypto adoption.

Movement in the Top 8

What This Means & The Impact:

Bitcoin’s dominance dropped to 60.75% (-0.7%), hinting at a potential rotation into altcoins. Some newer tokens and DeFi projects showed resilience, despite market turmoil.

This Week’s Narrative

Bybit’s $1.5 Billion Hack – The Largest Crypto Exploit Ever

Centralized exchange Bybit suffered a massive exploit during a scheduled wallet migration, leading to 401,000 ETH, 90,400 stETH, 8,000 mETH, and 15,000 cmETH stolen.

Trump’s Strategic Crypto Reserve – A Shift in U.S. Policy?

The recent discussion surrounding Trump’s plan for a Strategic Crypto Reserve has ignited speculation about whether the U.S. government will accumulate BTC in a similar fashion to gold reserves. While no formal policy has been enacted, this political shift could mark the first steps toward Bitcoin being recognized as a national asset.

What This Means & The Impact:

The Bybit hack highlights the increasing sophistication of exploits and the need for decentralized security solutions. Meanwhile, Trump’s proposal could push more governments to consider Bitcoin reserves, accelerating global crypto adoption.

Key Advancements

• Ethereum Foundation names Aya Miyaguchi as President, focusing on institutional expansion
• Berachain starts Governance Phase 1, opening applications for BGT token emissions
• Coinbase offers 12% APY on USDC deposits in Perpetuals portfolio
• Phantom acquires SimpleHash, expanding NFT analytics across 80+ chains
• On-chain investigator ZachXBT joins Paradigm as an Incident Response Advisor

What This Means & The Impact:

Ethereum’s leadership shift could impact governance, while Coinbase’s high USDC APY might draw liquidity into its ecosystem.

DeFi Brief

• Uniswap settles SEC probe, closing a year-long investigation
• Aave v3.3 upgrade launches, introducing staked aTokens to absorb bad debt
• Ondo Finance partners with Mastercard for tokenized RWAs
• Reserve Protocol introduces crypto indices, allowing 1-click narrative exposure
• Solana DEX aggregator Jupiter plans a full audit of its founders

What This Means & The Impact:

Regulatory clarity is emerging in DeFi, with multiple SEC cases dropped. Meanwhile, staking innovations and RWAs continue to gain traction.

Memes in Motion

• Pump.fun’s X account hacked, spreading fake token contracts
• Rumors suggest Pump.fun is developing its own AMM, moving away from Raydium
• Speculation about Kanye West launching a memecoin after reports suggest his X account was sold for $17 million

What This Means & The Impact:

Memecoins remain highly speculative, but infrastructure developments like custom AMMs could lead to more sustainable trading models.

Airdrop Buzz

• Monad hints at a potential airdrop for early testnet users

What This Means & The Impact:

Expect increased engagement on Monad, as airdrops continue to drive user adoption.

The Wrap Down

This week saw a brutal market downturn following the Bybit hack and a traditional market sell-off, leading to BTC breaking down from a long-term range. Institutional accumulation remains strong, while Trump’s Strategic Crypto Reserve discussions could reshape the future of Bitcoin as a national asset. DeFi and altcoins show resilience, while memecoins and staking protocols evolve.

Your Trusted Crypto Research Team,
Crypto Research Australia - CRA

"Survivors of volatility are the architects of the next bull run."