Ether Supply Squeeze? Bybit Hacker Emerges as World’s 14th-Largest ETH Holder

Ether trades 2% higher as the hacked ETH is seen as a permanently lost supply.

Key Points:

• Ether traded 2% higher, linked with the perception that hacked ETH is permanently lost.
• Analysts suggest Bybit may require purchasing more ETH to cover losses.

The hacker responsible for the Bybit theft, suspected to be affiliated with North Korea, has become one of the largest holders of ETH. Data from Arkham Intelligence reveals they hold an impressive 489,000 ETH valued at around $1.34 billion, making this person the 14th-largest ETH holder globally. Notably, this position puts the hacker ahead of prominent figures including Vitalik Buterin from the Ethereum Foundation and Fidelity.

This entity’s wallet addresses are being actively monitored and blacklisted by exchanges, indicating difficulties in liquidating these assets.

Additionally, Bybit has secured a loan from unnamed partners to recover nearly 80% of the cryptocurrency lost during the recent hack. Though the bridge loan may address immediate financial gaps, analysts warn that additional purchases will be essential.

“The supply linked to this matter is essentially gone. Exchanges won’t process transactions for such volumes. Meanwhile, Bybit is in debt for 402,000 ETH. The bridge loan may offer temporary relief, but purchases are inevitable,” remarked Vance Spencer, co-founder of Framework Ventures, on X.

Ether’s price has rebounded by 2.6%, rising to $2,730 from a recent low of approximately $2,614. Funding rates associated with ether’s perpetual futures remain positive, indicating a favorable perspective toward long positions.