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

Like any growing industry with lucrative returns, the crypto world has its fair share of crypto criminals and scammers. Here's how you protect yourself against P2P crypto scams and fraud.

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 (P2P) platforms is growing increasingly popular — thanks to the absence of intermediary parties and the general flexibility of this trading mode. Additionally, established P2P crypto trading environments, such as 

 platform, provide robust escrow systems and dispute resolution mechanisms. However, P2P crypto trading, just as any other kind of P2P financial activity, comes with a wide variety of scams and fraudulent schemes that every trader needs to be aware of before buying or selling cryptocurrency. 

In this article, we’ll take a look at common P2P crypto scams and learn how to avoid them.

P2P scams in crypto trading include diverse fraudulent techniques and schemes that nefarious individuals or groups employ to part honest traders with their hard-earned funds. These schemes exploit the unique nature of P2P crypto trading on online marketplaces and platforms.

Typically, a crypto P2P scam involves various elements, such as producing fake payment documentation, impersonating someone trustworthy or running an elaborate scheme that confuses the unsuspecting victim and forces them to release funds to scammers. Urging the victim to take transactions off a legitimate platform, and even the use of psychological pressure tactics, are frequently involved.

While any type of P2P financial activity may involve scams, certain unique characteristics of crypto P2P trading make this area particularly attractive to scammers and fraudsters of all kinds. First, crypto trading platforms feature a lower degree of regulation than many other markets, particularly the 

. Secondly, it's common for scammers to urge their victims to take all communication and payment activity off-platform. Left one-on-one with scammers, victims have little recourse when they lose their funds.

Moreover, the barriers to entry within crypto trading are relatively low, attracting a large number of financially naive or inexperienced individuals, many of whom fall victim to the various scams running in this sphere.

Below, we’ll cover some of the most common scams involved in P2P cryptocurrency trading, and discuss the best ways to avoid them.

Fake Receipt Scams/Escrow Transaction Scams

In fake receipt scams, the scammer sends forged payment documentation to trick you into releasing your crypto without actually sending any funds. In escrow transaction scams, the scammer urges you to use a fraudulent escrow service. You’re tricked into releasing payment into the escrow fund, assuming its legitimate nature.

How to avoid fake receipt scams/escrow transaction scams

: In order to avoid fake receipt scams, always verify that you’ve received the actual payment directly in your bank account or 

 before releasing funds from your side of the transaction. Additionally, 

As for fake escrow scams, only use trusted escrow services from reputable P2P platforms — and 

In chargeback scams, the fraudulent counterparty makes a payment and then files a chargeback after receiving funds from you, claiming fraud or an unauthorized transaction. As a result, the bank reverses the payment, and you find yourself out of both your money and crypto.

Scammers also like to exploit the vulnerability of check transactions by urging you to accept this form of payment. The check used to pay you bounces, leaving you unable to cash the now worthless piece of paper.

: Always ensure that you’ve received the payment in your account and the funds are available to you — i.e., there are no provisional lockups or pending confirmations — before releasing the payment on your side.

Also, avoid accepting check payments. Check transactions are particularly vulnerable to scams — and in 2025, there’s no pressing need to use this rather antiquated form of payment.

In this type of scam, the fraudster tricks you into canceling the order after you've already sent the funds. They typically tell you that there's a technical problem with payments or a price mistake, advising you to cancel and reorder. If you cancel, the platform views the trade as void. Meanwhile, the scammer disappears with your funds — and removes any ads they've placed on the platform.

: The key to preventing cancel order scams is simple: 

 cancel after you've paid, no matter what excuse the counterparty comes up with. If there's a genuine issue on their part, advise them to use the support system provided by the particular P2P trading platform.

In an overpayment scam, the scammer sends a higher amount than what was agreed upon during the deal. They then ask you to refund the excess amount, claiming it was a mistake on their part. Once you send the refund for the difference, the original payment is reversed as incorrect or fraudulent.

: To avoid overpayment scams, be cautious when you receive an offer with a mismatch between your asking price and what you’re being promised. If you're unsure about the situation, simply refuse the transaction, or ask the buyer to redo the transaction with the correct amount.

Phishing scams involve nefarious parties pretending to be legitimate platforms or individuals in order to trick you into giving away your 

 or login details. Often, they’ll send you fake emails and messages, or even create fake web pages that resemble real ones. Your login credentials might be compromised if you visit such a page via your browser and respond to the requests to share your details.

 click on links from unknown sources. Verify URLs to ensure you're on the actual site, and 

never share your private keys or personal information with anyone

, even if they sound trustworthy. Additionally, ensure that you protect your account with strong passwords and security features, such as 

 (2FA). Also, note that reputable websites virtually never offer a non-encrypted connection (the one that begins with 

: Legitimate P2P trading platforms such as Bybit P2P will 

Impersonator scams involve scammers pretending to be representatives of legitimate P2P platforms. They might also pose as well-known, trusted traders. These parties misrepresent their identities, and typically urge you to take the transaction outside the platform under various pretexts. If you fall for these scams and move your transactions outside the legitimate platform's environment, you lose all protections, and the scammers can easily steal your funds.

: Always stay within the platform for transactions. If anyone claiming to be from the platform asks you to move the trade off-site, 

SMS scams involve fraudulent parties sending fake messages to your mobile phone that look like they're from your bank or a payment processor. The message typically states that you've received a payment, specifying the amount you expect to receive from your transaction. The goal might be to steal your sensitive login details (if you click on the message), or to get you to send crypto or money to the fraudulent trader you’re dealing with.

: Don't click on links in unsolicited SMS messages. 

 by logging into your bank or trading account 

directly through the official website or app

, while allowed on many P2P crypto trading platforms, are an area of particular risk, due to the difficulties in proving or tracking any payments made. Scams during these transactions may involve a scammer buying or selling crypto with cash during a face-to-face meeting. In the buying scenario, the scammer might pay with fake bills. In the selling scenario, they may falsely claim that you’ve paid with counterfeit cash after receiving their crypto funds.

How to avoid in-person cash transaction scams

: In general, try to limit cash-based trading as much as feasible 

cash transactions are notoriously hard to verify in cases of disputes. If you absolutely need to buy or sell crypto for cash, carefully examine the counterparty’s reputation and history on the trading platform.

Triangle scams involve two scammers working together to deceive a seller. Here’s how it works: Scammer A and Scammer B both place orders with the same seller. Let's say Scammer A's order is for 1,000 

, and Scammer B's order is for 1,500 USDT. Scammer B sends a payment for 1,000 USDT, and Scammer A then marks their order as "paid." The seller releases crypto to Scammer A, seeing that their order has been marked as paid and that the seller's account was credited with 1,000 USDT.

Scammer B then sends a second payment — 500 USDT, the remaining amount on their buy order — and pressures the seller to release their funds, producing payment proofs for both transfers.

: Always verify that the payer’s name matches the identity verification info on the platform. Be careful with payment proofs produced, as scammers might also try to reuse the same ones for multiple orders. Always double-check before releasing crypto in order to ensure you're dealing with the right person — and not falling for a scam.

In this type of scam, the fraudulent party offers you a better rate through an external communication source like 

 or WhatsApp. They ask you to create an order on a legitimate platform after they've supposedly paid you with the better rate externally. However, the payment never arrives, and is only supported by fake proofs.

: Don’t communicate with potential parties on external channels, and don’t pay them outside of the P2P platform you use. Always use the communication channels offered by an established trading platform. Additionally, never release payments before having received your funds — advice that applies not only to MITM scams, but also to many of the other exploits we've discussed above.

Below are some common key red flags that may help you spot a P2P crypto scam:

To avoid falling victim to P2P crypto scams, you can take a few common sense steps and stick with your approach — regardless of what the counterparty suggests. 

You’re also advised never to trust screenshots of proof of payment. Always check that you've received 

Finally, never send payments to third parties — 

always pay to the counterparty’s account

 registered on the platform. Finally, and most importantly, 

If you've fallen victim to a P2P crypto scam, immediately report the issue to the platform, freeze your account activity to avoid unauthorized payments out of it, contact your bank or payment processor to inform them of the issue, collect documentary evidence — and, if the problem warrants it, report it to your local authorities.

Trading crypto via P2P channels can be a highly profitable and rewarding activity. While some of the above scams sound frightening, doing your 

 and sticking with the common-sense approaches and strategies we’ve outlined above should minimize your risk of falling victim to the sinister pursuits of crypto scammers.

How to Avoid P2P Crypto Scams and Fraud

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards