- Ethereum exchange reserve chart for Bybit revealed a sharp drop following the 21st February 2025 hack.
- Nearly 48 hours after the Ethereum theft on Bybit, signs of recovery have emerged in ETH reserves.
Nearly 48 hours after the Ethereum[ETH] theft on Bybit, signs of recovery have emerged in ETH reserves.
By the 23rd of February 2025, at 08:00 UTC, Bybit’s Ethereum reserves surpassed 200,000 ETH, rebounding from a drastic decline.
Simultaneously, Ethereum Netflows, Funding Rates, and CME Futures Open Interest (OI) provided critical insights into market sentiment post-hack.
Bybit replenishes ETH holdings: A sign of strength?
A look into the Ethereum Exchange Reserve chart for Bybit revealed a sharp drop following the 21st February 2025 hack.
Before the incident, Bybit held 443,691 ETH. One hour after the hack, reserves plummeted to 39,692 ETH, reflecting immediate outflows.
However, as of the 23rd of February 2025, reserves exceeded 200,000 ETH, indicating a gradual but steady recovery.
Source: CryptoQuant
This rebound suggested that Bybit actively replenished its ETH holdings to meet liquidity demands and restore market confidence.
The recovery also reduced concerns about prolonged ETH price declines, as previous instances of exchange reserve rebounds have historically preceded price stabilization.
Traders viewed this as a positive signal, reinforcing the idea that the worst of the market shock had passed.
Capital flow shifts: Is confidence returning?
Ethereum netflow data further supported the notion of market stabilization. On the 21st of February 2025, Bybit’s Netflow chart fell to -6.6K ETH, reflecting mass panic selling and withdrawals following the hack.
However, on the 23rd of February, the Netflow stabilized, with inflows increasing to offset prior outflows.
Source: CryptoQuant
This recovery mirrored the exchange reserve rebound, suggesting Bybit was actively working to restore ETH levels and maintain liquidity.
Historically, Netflow recoveries after major exchange disruptions often led to price stabilization or reversals, as seen in previous security incidents affecting centralized platforms.
The return of positive Netflows hinted at renewed trader confidence, reducing the immediate risk of further price drops due to exchange instability.
However, Funding Rate declines and macroeconomic uncertainties continued to pose challenges.
Market sentiment wavers
Analysis of Ethereum’s Funding Rate signaled increased selling pressure, as Funding Rates turned negative following the hack.
This shift suggested fear-driven trading behavior, with sellers aggressively shorting ETH in response to the uncertainty.
Source: CryptoQuant
Historically, steep Funding Rate declines often result in sideways price movement or increased volatility, particularly when major resistance levels remain unbroken.
In this case, ETH struggled near the $3,000 level, failing to gain sustained momentum.
The market’s reaction mirrored previous events, where hacks or security breaches led to short-term liquidation cascades, followed by prolonged consolidation phases.
Until Funding Rates stabilize, or bullish catalysts emerge, ETH price volatility remains elevated.
Are institutions hedging or accumulating?
The CME ETH Futures OI chart offered insights into institutional sentiment. OI peaked at $3.26B on the 24 of February 2025, reflecting rising speculative activity as ETH prices hovered around $2,819.69.
Source: Coinglass
This surge suggested institutional traders positioned themselves strategically, potentially hedging against further downside risks.
The relationship between CME OI and exchange reserves further complicated the market outlook. While Bybit’s ETH reserves and netflows recovered, institutional traders remained cautious, balancing recovery optimism with volatility risks.
In conclusion, Bybit’s Ethereum reserves and Netflow recovery post-hack signaled market stabilization, but negative Funding Rates and cautious institutional positioning pointed to ongoing price uncertainty.
The market’s next directional move would likely depend on whether Funding Rates stabilized or further outflows pressured ETH toward lower support zones.
