Crypto Market Sees Wild Swings Amid Coinbase Win and Bybit Hack
The crypto industry began Friday on a high note, celebrating Coinbase’s legal victory against the SEC. However, optimism was short-lived as Bybit suffered a $1.5 billion hack, causing Bitcoin, Ethereum, and major altcoins to plunge.
Coinbase Secures SEC Dismissal, Boosting Crypto Optimism
In a major regulatory shift, the SEC under President Donald Trump’s administration is set to dismiss its lawsuit against Coinbase, marking a win for the largest U.S. crypto exchange.
- Coinbase shares surged 6% premarket on the news.
- Bitcoin briefly touched $100,000, its highest level in two weeks.
- Ethereum (ETH) jumped more than 4% as investor sentiment turned bullish.
Bybit Hack: The Largest Crypto Theft in History
Hours after the Coinbase rally, Bybit—a Dubai-based crypto exchange handling $36B in daily volume—confirmed a $1.5 billion hack.
- Ethereum and Ethereum derivatives were stolen.
- Bybit CEO Ben Zhou assured users that withdrawals remained open.
- Bybit deployed emergency lending measures to avoid a liquidity crisis.
“Deregulated markets sound good—until hacks like this happen,” said legal expert Hilary Allen.
Crypto Prices Crash as Panic Selling Begins
The Bybit hack erased market gains, sending crypto‘s assets into a tailspin:
- Bitcoin plunged 5%, falling below $95,000.
- Ethereum lost over 8%, as panic gripped traders.
- Meme coins like Dogecoin tumbled 10%.
Even Coinbase stock wiped out early gains, closing down 8%, marking its worst decline in 2025.
Regulatory Uncertainty and the Future of Crypto
The SEC’s reversal on Coinbase reflects a new era of light-touch regulation under Trump. However, critics argue the Bybit hack proves that stronger oversight is needed.
“Crypto remains highly volatile and prone to security risks,” said securities policy expert Benjamin Schiffrin.
As lawmakers weigh industry-friendly regulations, the crypto’s sector faces a defining moment:
- Will deregulation fuel innovation—or expose investors to greater risks?
- Can exchanges strengthen security amid rising hacks?
- Will Bitcoin maintain its long-term bullish trajectory?
For now, Friday’s whiplash serves as a stark reminder of crypto’s unpredictable nature.