Bybit hacking finally makes Ethereum have a high price story

Cryptocurrency exchange Bybit was hacked yesterday (21st), losing about US$1.47 billion in ETH and stETH, causing market shock. Arkham analysis data shows that hackers cashed out about $1.34 billion in ETH (499,395 pieces) and $42 million in cmETH (15,000 pieces) and spread the funds to 53 addresses.

This incident was unprecedented in scale and became the largest theft in cryptocurrency history, resulting in large-scale capital outflows by Bybit, panic selling and ETH short selling in the market.

The ETH price therefore fell from around $2800 to a low of $2616.72, and has rebounded to $2694.5, with a 24-hour decline of 2.43%.

Zhu Su: Ethereum finally has a reason to rise

Cryptocurrency trader John Brown tweeted today: "All short sellers must eventually recoup their positions, whether they close their positions for profits or stop losses, which will affect the price trend. However, long sellers do not have to sell them."

Although Brown did not directly mention the Bybit incident, Zhu Su, founder of Sanjiang Capital, quoted the tweet and commented: The Bybit incident provides a narrative for the rise in Ethereum prices (short cover).

However, Coinglass data shows that the long-short ratio of Ethereum contracts has not changed significantly (50:50 in the past 12 hours), and the capital fee rate has not shown a significant negative fee rate (mainly short selling). Therefore, Zhu Su's "Bybit short squeeze narrative" lacks basis.

In view of the current weak Ethereum ecosystem and the lack of strong support factors in the market, Zhu Su's comments may be ridiculing that Ethereum has finally experienced a "striking" event.

Zhu Su crypts the risks of centralized exchanges

After the Bybit incident, Zhu Su tweeted and joked: "I finally received my FTX compensation. The two and a half years of long wait has finally ended! Just deposited Bybit, what should we do more?"

Since FTX and Bybit are both centralized exchanges, Zhu Su's remarks seem to suggest risks in centralized exchanges.

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