Cryptocurrency Prices Drop Amid Bybit Security Incident

Cryptocurrency prices dropped on Friday, reversing early gains due to reports of a potential security incident at crypto exchange Bybit, which saw $1.4 billion in crypto outflows.

Bitcoin (BTC) fell to near $97,000 after hovering around $100,000 earlier in the day, while ether (ETH) dipped nearly 4%, falling below $2,700.

The sudden downturn resulted in approximately $100 million worth of leveraged derivatives trading positions being liquidated, predominantly among longs anticipating price rises, according to CoinGlass data.

This significant movement followed blockchain analyst ZachXBT’s observation of a “suspicious” $1.4 billion outflow of ETH. Ben Zhou, CEO of Bybit, confirmed the incident via an X post.

UPDATE (Feb. 21, 16:07 UTC): Adds details about liquidation and updates on price actions.

Read more: Bitcoin and Ether Tumble on Potential $1.46B Bybit Hack