Feb 24, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — Mixed Economic Data Leads to Risk-Off Strategies

For the past two months, the strong U.S. economy has given investors confidence to invest in markets, even amidst looming tariffs and a stricter Federal Reserve Board. However, recent data indicates that this support may be weakening.

Last Friday, several reports on consumer sentiment, housing and services contributed to the S&P 500's largest loss of the year as it fell 1.7%, wiping out its weekly gains. In contrast, bonds experienced a rally, driving the yield on 10-year Treasuries down to 4.43%. The VIX {

the Chicago Board Options Exchange's (CBOE) Volatility Index

, known as the "fear gauge"] spiked, but remained below 20, signaling increased market anxiety.

Previously, optimism among investors was fueled by speculation regarding U.S. president Trump’s policies promoting disinflationary growth. However, mixed economic signals are now causing concern, particularly a report showing a decline in consumer sentiment alongside rising long-term inflation expectations — the largest drop since 1995. Additionally, existing U.S. home sales fell for the first time since September 2024, further complicating the outlook.

While January's job growth appeared solid, with 143,000 jobs added and the unemployment rate stable, institutional investors began the year with a pro-risk stance, optimistic about the U.S. economy’s trajectory. Yet, the recent volatility in economic data has prompted a reevaluation of strategies.

Weekly Crypto Highlight — SEC May Drop Lawsuit Against Coinbase

Coinbase announced that the U. S. Securities and Exchange Commission (SEC) has agreed to drop its lawsuit accusing Coinbase of operating an illegal exchange, pending Commissioners’ approval. Following this news, Coinbase shares initially surged in premarket trading, but fell by 4% to $246.30 as of midday in New York. Bitcoin also declined by about 1%, trading at around $97,000.

This decision signals a shift from the aggressive regulatory stance of former SEC Chair Gary Gensler, who faced criticism from the crypto industry for enforcing regulations through lawsuits. Last week, the SEC likewise requested a pause on a similar case against Binance, highlighting ongoing developments regarding a regulatory framework for digital assets.

The SEC's complaint will be unfairly dismissed, meaning it cannot be refiled. Coinbase CEO Brian Armstrong stated that this dismissal will entail no fines or changes in the company’s operations.

Coinbase has actively engaged in Washington, D.C., donating millions to support pro-crypto candidates and recently adding Chris LaCivita, a former Trump campaign manager, to its advisory council. Armstrong has also communicated with Trump directly.

The SEC initially sued Coinbase in June 2023 amidst a broader crackdown on the digital asset industry following the 

. Gensler had claimed that many tokens fell under SEC jurisdiction. 

The dismissal alleviates a significant burden on Coinbase, allowing it to list more tokens and refocus on product development, rather than legal defenses. This outcome removes a key litigation risk, enhancing Coinbase's capacity to innovate. The company recently reported strong fourth-quarter earnings, and now aims to collaborate with Congress and regulators in order to establish clearer rules for the crypto landscape.

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Weekly Institutional Insights: Mixed Economic Data Rattles Market; SEC May Dismiss Lawsuit

Learn everything you need to know about Bybit's recent security incident and the next steps in this article.

Security breaches have shaped the cryptocurrency industry for over a decade, forcing exchanges to evolve, users to become more cautious, and regulators to tighten their oversight. From the infamous 

 collapse to the Binance security breach and 

, history has shown that while no platform is immune to threats, those that respond swiftly and transparently can emerge stronger than ever.

 where over $1.5 billion worth of ETH and stETH were compromised, and while any breach is a serious concern, our rapid response and transparency set us apart from past incidents. Unlike FTX, where billions disappeared in mere hours due to mismanagement, Bybit immediately secured assets, froze affected wallets, and maintained full platform operations. Funds remain backed 1:1, and users can continue to trade, withdraw, and deposit without disruption.

Looking at past events, we can understand how crypto security has evolved, what lessons were learned, and what the industry must do next to ensure a safer future.

A Look Back: The Most Notorious Crypto Hacks That Changed the Industry

One of the earliest and most devastating exchange hacks, 

 — valued at $450 million at the time, but worth over $36 billion today. The platform’s weak security, lack of cold storage, and failure to detect suspicious transactions led to its downfall.

The lesson was clear: Exchanges must prioritize secure wallet management, rigorous internal controls, and transparency. The Mt. Gox collapse led to better industry-wide custodial practices, ensuring that no single exchange could operate without proper security measures in place.

 due to a smart contract vulnerability. In a surprising turn of events, the hacker returned the funds, proving that on-chain tracking and community response could play a key role in recovering stolen assets.

The attack showed that DeFi projects need more rigorous security audits and multi-signature controls to prevent exploits at the smart contract level.

Unlike traditional exchange hacks, FTX’s downfall wasn’t due to external attackers but rather internal mismanagement and misuse of customer funds. In just two hours, billions of dollars were withdrawn, leaving users helpless as the platform collapsed.

This event reshaped the industry by accelerating Proof of Reserves (PoR) adoption, a transparency measure that allows users to verify an exchange’s solvency. FTX’s failure highlighted the need for stricter regulations, better internal accountability, and clear asset-backing policies.

In October 2022, Binance suffered a $570 million hack after attackers exploited a vulnerability in BSC Token Hub, a cross-chain bridge used to transfer assets between blockchains. The exploit allowed hackers to move 2 million BNB tokens off the network. 

Binance’s swift response helped limit the damage, with the exchange pausing the BNB Chain for several hours. This attack highlighted the risks associated with cross-chain bridges, reinforcing the need for stricter smart contract audits, real-time threat detection, and stronger validator coordination to prevent similar exploits in the future. 

Each of these incidents led to major security advancements and industry-wide improvements. Now, Bybit faces its own challenge — and just like Binance and other top exchanges, we are committed to coming back stronger than ever.

How Exchanges Have Improved Security Over Time

The best exchanges don’t just survive hacks—they emerge stronger by adopting new security protocols, improving transparency, and prioritizing user protection.

One of the most significant changes has been the shift to cold storage dominance, where most exchanges now keep 90% or more of user funds in offline wallets to minimize exposure to potential attacks. Security audits have also become an industry norm, with regular penetration testing, bug bounty programs, and white-hat hacker collaborations helping to identify and fix vulnerabilities before they can be exploited.

User protection funds, like Binance’s SAFU, have set a new standard for ensuring users don’t bear the cost of security breaches. AI-powered fraud detection and real-time transaction tracking have also become essential tools for identifying suspicious activity before it escalates.

Beyond individual exchange improvements, the broader industry has adapted through regulatory changes. Proof of Reserves (

) has become a key transparency measure, allowing users to verify an exchange’s solvency. Licensing requirements and exchange accountability frameworks have also become more stringent, making it harder for bad actors to operate unchecked.

How Bybit’s Response to the Crypto Hack Sets a New Standard

The way an exchange responds to a security incident defines its long-term reputation and user trust. Over the years, some platforms have struggled to manage hacks transparently, while others have turned crises into opportunities to strengthen security. Bybit’s response to this incident demonstrates our commitment to transparency, operational resilience, and user protection.

The speed of response is one of the most critical factors in mitigating damage during an attack. Bybit acted immediately, isolating affected wallets and preventing further losses. Unlike past incidents where breaches went undetected for hours or even days, Bybit’s security teams responded in real time. The ability to contain the situation quickly is a testament to our proactive monitoring systems, robust security protocols, and dedicated cybersecurity team.

Full Transparency and Real-Time Communication

Many users lose confidence in exchanges when there is a lack of clear communication during a crisis. From the start, Bybit has maintained full transparency, providing regular updates to reassure users that their assets remain secure and backed 1:1.

Rather than delaying information or releasing vague statements, Bybit has been upfront about the incident, outlining the exact steps taken to contain the breach and reinforce security. This level of openness is crucial in maintaining user trust and setting a new industry standard for responsible crisis management.

One of the biggest concerns during an exchange hack is whether users will face withdrawal restrictions or see trading halted. Bybit ensured that trading, deposits, and withdrawals remained fully operational throughout the incident.

This highlights the exchange’s financial strength and liquidity, ensuring that user funds were not affected. No restrictions were placed on withdrawals, and all assets remained backed 1:1. 

Bybit isn’t just focused on resolving the immediate issue; we are using this incident as a catalyst to further enhance security across the platform. While we already implement industry-leading security measures, we are now working with top blockchain security firms to audit our systems and implement even more advanced security solutions.

Bybit remains financially strong, with all user funds fully backed and secure. Our commitment to industry-leading security practices, user transparency, and rapid response times ensures that we will emerge from this incident stronger than ever.

As the crypto industry continues to evolve, Bybit is setting a new standard for how exchanges should handle security challenges — with transparency, operational resilience, and an unwavering commitment to user protection.

While exchanges continue to improve security, users must also take proactive steps to safeguard their assets. Here’s how you can strengthen your crypto security:

 or SMS-based 2FA to add an extra layer of protection. This prevents unauthorized access even if your password is compromised.

Use withdrawal whitelisting to ensure only pre-approved wallet addresses can receive funds. This minimizes risks from phishing scams or unauthorized transactions.

If you’re holding large amounts of crypto, consider hardware wallets like Ledger or Trezor. Unlike exchange hot wallets, cold storage keeps assets offline and safe from cyberattacks.

Hackers often exploit major security incidents by impersonating exchange support teams. Always:

Enable transaction alerts to receive real-time notifications for any account activity. Report any suspicious actions immediately to Bybit support.

By following these best practices, you can further protect your assets even during uncertain times.

The Bybit incident reinforces the need for continuous security improvements across the industry. Moving forward, we can expect:

Stricter Security Standards for Exchanges

Regulators may push for mandatory insurance funds to protect users in the event of security breaches. Additionally, exchanges will be expected to adopt stronger internal controls and more frequent security audits.

To combat sophisticated attacks, exchanges will likely invest in AI-driven risk monitoring that detects anomalies before a hack can escalate.

Greater Transparency and Proof of Reserves

 to ensure their funds are secure. Bybit remains committed to maintaining full backing of user assets and transparent operational updates.

More exchanges may introduce hybrid custody models, where users can trade while maintaining partial self-custody of their assets.

Crypto’s Strength Lies in Solidarity: Bybit’s Gratitude to Partners and Users

One of the most powerful takeaways from this incident has been the overwhelming support from our partners, industry leaders, and users. As soon as the news broke, top security firms, blockchain analytics teams, and exchange partners reached out, offering their expertise and assistance to track the stolen assets and enhance security.

We are incredibly grateful for the outpouring of support from our community. Crypto has always been an industry built on resilience and collaboration, and this event has reinforced that when one exchange is attacked, the industry stands together to protect users and strengthen security.

Bybit would like to extend a heartfelt thank you to our partners, users, and the broader crypto ecosystem for standing with us during this time. Your trust, patience, and unwavering support fuel our commitment to come back stronger, set new security benchmarks, and continue providing a safe and innovative trading experience.

Bybit’s Commitment to a Stronger Future

Despite this setback, Bybit remains one of the strongest and most well-respected exchanges globally. Our response to this incident proves that:

Bybit’s journey doesn’t end here. We will continue to improve, evolve, and set new security standards for the industry.

The crypto space must learn from every challenge, and with greater security, transparency, and resilience, we can build a safer, more trustworthy future for all users.

The road ahead is clear — Bybit is here to stay, and we are stronger than ever.

For real-time updates, you may refer to our official channels such as the 

Beginner

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Hacks That Strengthened Crypto: Responses That Build a Safer Future For All

As of mid-February 2025, the cryptocurrency market is experiencing movements driven by economic pressures and regulatory movements. 

As of mid-February 2025, the cryptocurrency market is experiencing movements driven by economic pressures and regulatory movements. Recent inflation data has rattled financial markets, leading to a sharp reassessment of expectations for Federal Reserve policy. A higher-than-expected Consumer Price Index (CPI) report has caused Bitcoin to dip below $94.2K before rebounding to approximately $98.1K. This fluctuation illustrates how macroeconomic factors are increasingly influencing digital assets, mirroring trends seen since early 2022 when the Fed began raising interest rates.

Santiment data reveals that discussions around the terms “CPI” and “inflation” surged to 1.75% of all crypto conversations, the highest level since 2022. This heightened sensitivity indicates that when markets are stagnant or declining, economic news is met with increased concern and fear, often leading to sell-offs. Despite the increased uncertainty, Bitcoin has demonstrated resilience, staying above the $98K mark. Nevertheless, continued inflation could lead to further volatility in risk assets such equities and crypto.

The LIBRA scandal has further complicated the crypto landscape. Argentine President Javier Milei's endorsement of the cryptocurrency led to a dramatic rise — and an even more significant fall in value, as it plummeted by 80% within days. Allegations of fraud surrounding Milei have intensified scrutiny of speculative assets, particularly meme coins, leading to a crisis of confidence among investors.

The fallout from this scandal reflects a broader trend of growing impatience with high-risk assets. Retail sentiment has turned bearish, as evidenced by increased mentions of selling across social media platforms. This shift highlights the need for thorough research before investing in speculative projects. The LIBRA incident serves as a stark reminder of the risks associated with relying solely on endorsements for investment decisions, prompting many traders to seek more stable and established cryptocurrencies.

Emerging Opportunities and Investor Behavior

Litecoin is gaining traction, driven by the possibility of a spot ETF approval that could pave the way for broader access to altcoins, further maturing the crypto market. As discussions around the term “Litecoin ETF” spike, market analysts are optimistic about the likelihood of approval, which could enhance investor interest in Litecoin and similar assets.

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Bybit x Santiment: LIBRA Scandal Gives Rise to Meme Coin Crisis; Litecoin ETF Anticipations Build Up

KAITO is the core currency of Kaito AI’s InfoFi ecosystem, enabling transactions, governance, staking, and community engagement.

The S&P 500 fell 0.43% amid Walmart’s weak outlook, with investors eyeing PMI and home sales data next. Gold rose 0.23% to $2,939 on safe-haven demand but retreated from a $2,954 high. Traders await S&P Global Flash PMIs. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 0.02%, with Bitcoin and Ether rising by 2.46% and 0.69%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is BERA, which surged nearly 15.8% after The Graph integrated Berachain Mainnet on day one, enabling seamless onchain data access.

Berachain (BERA), founded in 2021, is a Layer 1 blockchain with Proof-of-Liquidity consensus, ensuring security and liquidity while maintaining full Ethereum compatibility. The Graph has 

 support for the newly launched Berachain mainnet from day one. Developers can now query Berachain data using Subgraph Studio, making it easier to organize and access onchain data. This integration enables the creation of fast and efficient frontends for Berachain-powered dapps.

Check Out the Latest Prices, Charts, and Data of 

 is the core currency of Kaito AI’s InfoFi ecosystem, enabling transactions, governance, staking, and community engagement. The total supply is allocated as follows: 56.67% to community and ecosystem initiatives (including ecosystem growth, creator incentives, and liquidity rewards), 25% to core contributors, 10% to the foundation, and 8.3% to early backers. Distribution is merit-based, using AI-driven assessments of engagement, governance participation, and long-term alignment with Kaito’s vision. Staking provides rewards and voting rights, ensuring active participation. A claim process for KAITO will be announced soon.

Yesterday, BTC Spot ETFs recorded a net outflow of $252.8M, including $33.5M from GBTC and $219.3M from non-GBTC funds.

. With $43 million in funding, this presents a valuable opportunity. To maximize your points, complete the "Generate at least one transaction on Sahara Testnet" task by sending a small amount of SAHARA via Metamask. This earns 20 points, a significant amount compared to other tasks. Ensure you take full advantage of this opportunity.

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KAITO Powers the InfoFi Ecosystem with Governance Staking and Community Rewards

Bybit Learn

All About P2P Platforms

Learn how to become a Bybit P2P Advertiser, post crypto trade ads for free, and leverage secure escrow, zero fees, and global reach to maximize profits.

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Buying and selling cryptocurrencies for fiat money are key activities within the crypto industry. Crypto-to-fiat (and vice versa) trading operations support two vital processes that link the worlds of crypto and traditional finance — 

. While there are several primary ways of buying and selling crypto for fiat, 

 (P2P) markets are desirable to traders thanks to their flexibility and the absence of intermediary parties. Transacting with a fellow trader to buy or sell crypto can be a mutually beneficial deal for both parties, especially if the trading platform doesn’t take its cut in transaction fees.

Unfortunately, many P2P crypto markets suffer from two key drawbacks. One is the presence of transaction fees, imposed by the platform that acts as a matchmaking medium for the transaction. Such fees defeat one of the main purposes of P2P trading — namely, eliminating intermediaries with financial interest. The second problem relates to the numerous scams and disputes during transaction execution in these trades.

Among the best solutions to avoid these problems is 

. With zero transaction fees and a secure escrow system that protects both parties during a P2P crypto transaction, the platform may be an ideal choice for your crypto sell or buy operations. You can also register as an Advertiser on the platform to truly maximize the profitability and efficiency of your crypto-to-fiat or fiat-to-crypto activities. In this article, we’ll take an in-depth look into Bybit P2P Advertising and the numerous benefits that traders can derive from using this program, which is free to join for users of the Bybit P2P trading platform.

Bybit’s P2P trading platform helps cryptocurrency sellers and buyers conduct their P2P transactions with zero fees, a secure escrow system, access to a global audience of more than half a million users and the choice of more than 70 national fiat currencies, 300 cryptocurrencies and 600 payment methods. 

Run by one of the world’s leading cryptocurrency exchanges, Bybit P2P serves as one of the best mediums for crypto off-ramping and on-ramping.

Unlike smaller P2P platforms, Bybit P2P offers a sweeping range of fiat currencies. Among the more than 60 national currencies on offer are the U.S. dollar (USD), euro (EUR), British pound (GBP), Swiss franc (CHF), Singapore dollar (SGD), Brazilian real (BRL), United Arab Emirates dirham (AED) and many more.

True to the ethos of P2P trading, the platform charges no transaction fees for any buy or sell operations. Traders also benefit from an escrow system that lets both parties transact in complete security.

The two key parties on the platform are takers and makers. Takers place buy or sell orders through the existing ads on the platform, while makers are the ones placing the ads via the platform’s P2P Advertising program. 

Makers can post ads to increase the visibility of their crypto offers, thereby reaching more prospective buyers more quickly and optimizing the profitability and efficiency of their crypto trading. There are no fees involved for posting the ads or joining the Advertiser program. You do need to meet specific requirements, though, as we’ll detail further on.

As an Advertiser, you can also benefit from the unique P2P advertising shared asset function, which lets you place multiple ads for the same funds offered for sale. For example, if your account holds 500 USDT, you can place different ads for this amount, each tailored to different potential buyer segments.

There are three types of Advertisers on the Bybit P2P platform: General, Verified and Block. General Advertisers can publish their sell ads on the platform to attract potential buyers. Depending upon their last 30-day 

, they’re classified into either the Beginner, Regular or Veteran subtype.

General Advertisers who successfully undergo additional verification and meet certain trading activity requirements can earn the Verified Advertiser status. These users enjoy higher ad visibility rankings and more generous transaction limits.

Block Advertisers wish to trade cryptocurrency at higher volumes, and enjoy the most generous transaction limits. To become a Block Advertiser, traders will need to undergo a complete individual or institutional verification, depending upon the account variety held on Bybit.

To qualify as a General Advertiser, Bybit P2P users need to have been registered on the platform for at least 30 days. Their past 30-day trading volumes (on a rolling basis) determine their General Advertiser subtype. Beginner General Advertisers are those with a trading volume of less than 2,000 in USDT equivalent over the past 30 days. They also have no minimum requirement in terms of the number of counterparties transacted with during that period. 

Advertisers with a 30-day trading volume of at least 2,000 USDT and at least five counterparties qualify for the Regular General Advertiser designation. Those with a 30-day trading volume of at least 10,000 USDT and at least five counterparties can become Veteran General Advertisers. All General Advertisers also need to meet additional requirements in terms of the number of completed orders, order completion rate and basic 

. The table below outlines the requirements for all three varieties of General Advertisers.

Verified Advertisers need to meet further identity verification requirements beyond the basic level used for General Advertisers. They also need to have completed at least 60 orders in the past 30 days, have at least 100 total completed orders, maintain a favorable rating of at least 95%, achieve an average payment time of under 15 minutes and keep at least 500 USDT in their account at the time of application.

Block Advertisers also need to meet comprehensive individual or business verification requirements beyond those for Verified Advertisers. The verification requirements for Block Advertisers are summarized in the table below.

All Advertiser types, including General Advertisers, benefit from having their ads reach thousands of Bybit P2P users. General Advertisers enjoy ad limits commensurate with their level — 1,000, 20,000 or 50,000 USDT per ad for Beginner, Regular and Veteran, respectively. The amount limits per ad for BTC and ETH also vary according to the level.

Becoming a Verified Advertiser allows you to access additional benefits, such as a special logo confirming your verified status, higher ranking in the ad display algorithm, access to exclusive promotions and priority customer service.

You can post a P2P ad either from a desktop or via the Bybit mobile app as follows:

: To post a P2P ad from a desktop environment, navigate to 

 from the main menu on Bybit’s website and select the 

: Fill in the details of your ad, such as the type of ad, your preferred asset, minimum and maximum amounts per order, and price. You can choose either a fixed price — which remains unchanged, regardless of market developments — or a floating price — which varies based on ongoing market fluctuations. The floating price is calculated by taking into account the premium and the reference price to keep it in line with changing market dynamics.

: If you use the Bybit mobile app, tap on 

: Tap the three horizontal dots icon in the upper-right corner to go to 

: Fill in the details of your ad. After completing your ad’s details, review and publish it.

If you apply to become a Verified Advertiser or Block Advertiser, note that you’ll need to provide a 1,000 USDT security deposit. This amount remains frozen in your account while you maintain your Verified or Block Advertiser status.

Tips for Successful P2P Advertising on Bybit

As a P2P Advertiser, you can maximize your success and profitability on the platform by following a few strategies. Naturally, one of the keys to success is to offer competitive prices. This not only attracts more willing buyers, but may also help you in the ad positioning rankings, since the top five Verified Advertisers with the best prices are regularly selected to be shown to buyers as special recommendations.

Maintaining a high order completion rate is another key strategy for successful advertising: it helps build your reputation and acts as a factor in determining the ad visibility rankings.

Being flexible in terms of your order — for example, offering a variety of payment methods — is also critical. Bybit’s P2P Trading attracts a global audience of more than half a million users, so when you offer more payment methods, you’re more likely to find willing buyers from different localities.

Being responsive and prompt in answering potential buyer inquiries is also highly recommended. A further way to optimize your ad performance is to become a Verified Advertiser, which helps you both build trust and achieve a higher position in the ad ranking algorithm. If you routinely plan to trade at significant levels, such as tens or hundreds of thousands of USDT equivalent per order, you may also consider becoming a Block Advertiser, which helps you achieve the highest priority in ad rankings.

P2P crypto trading on Bybit is an excellent way to buy or sell crypto without any transaction fees while enjoying the protections provided by a leading crypto exchange platform. The platform’s secure escrow system, zero fees on P2P orders, global audience of more than half a million users, close to 600 payment methods and choice of around 60 fiat currencies and 300 cryptocurrencies make it an ideal environment for cryptocurrency buyers and sellers. 

Furthermore, when you become an Advertiser on the platform you significantly boost your trading outcomes, exponentially increase the visibility and reach of your ads, qualify for generous order limits and build trust as a Verified Advertiser.

Becoming a P2P Advertiser on Bybit: Everything You Need to Know

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards