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

Trading

Prefer more reactive indicators when trading crypto? Give exponential moving averages a shot especially since they account for price volatility.

Exponential Moving Average How To Use EMA to Trade Volatile Crypto

The cryptocurrency market is highly speculative in nature, which usually leads to exaggerated levels of volatility. To compensate, investors need to use 

 that adapt to the volatility of cryptocurrencies. One such indicator is the exponential moving average (EMA), which is designed to smooth out the effects of price volatility.

 (MA) is one of the most commonly used tools to indicate overall trend direction. The exponential moving average focuses on the most recent price data, which is important when trading in the volatile crypto environment. In this article, we’ll discuss how the EMA is used in crypto trading, and we’ll outline different ways to use the EMA, along with practical trading examples.

An exponential moving average is a technical indicator that gives greater weighting to recent prices in its calculation. As a result, EMA responds more quickly to the latest price changes, as compared to a simple moving average (SMA), which has a bigger lag. 

The primary aim of the EMA is to smooth out the price and remove short-term price fluctuations.

Most investors focus on SMA, which shows the average price of a specific number of candles. If the current price moves above the average, bulls are stronger than bears. On the other hand, changing direction might indicate a trend change. However, EMA gives more weight to current data because its formula more closely follows the price.

The mathematical formula for calculating EMA builds upon its previous values. Therefore, all price data remains up-to-date so that the newest data has greater impact than the older price data.

= Previous period’s EMA (SMA is used for the first period’s calculations)

 = Exponential smoothing constant (this gives the appropriate weight to the most recent prices, utilizing the specified period in the MA)

The EMA clarifies price action for traders by reducing the lag in the price chart. As a result, it smoothes the price and makes the trend more reliable and accurate than with the traditional moving average. However, its greater price sensitivity may at times confuse traders. Therefore, the ideal approach is to use other technical indicators in addition to EMA in order to determine the most accurate buying point.

As with all technical indicators, moving averages cannot be the ultimate solution for trading cryptocurrencies. Therefore, investors should understand these indicators’ strengths and weaknesses before using them to make trading decisions.

Strengths of the Exponential Moving Average

Weaknesses of the Exponential Moving Average

How to Use the Exponential Moving Average to Trade

EMA works like other moving average indicators, where the primary aim is to identify the market trend. If a crypto asset is within an uptrend, the price will be above the EMA. For a bearish trend, the price should remain below the EMA. On the other hand, a contraindication of the EMA would represent a correction in a trend, as shown in the image below.

The above image shows the three phases of a trend, which we can easily find using the EMA:

In cryptocurrency trading, investors should find a stable price above the EMA to open a buy position. In addition, a trend trader should understand how to gauge the strength of a trend.

Based on the EMA value, we can define a market trend as follows:

Long-term traders and HODLers should use an EMA of 50–200 days to identify the long-term price direction in cryptocurrency trading. On the other hand, the short-term trend is suitable for opening trades. However, the period of the EMA depends on the trader’s choice and flexibility. Fortunately, this can be easily adjusted to fit your trading plan.

There are many ways to trade cryptocurrencies using EMA. However, professional traders like to keep the system simple, using it where profitability is high.

Trend trading is the basic way to identify where most market participants are most comfortable owning the asset at the current price. In this method, the combination of EMA and SMA has higher probability rates. 

For example, we can use a 200 SMA for long-term trends and a 50 EMA for short-term trends. Therefore, crypto investors should buy once the price moves above both the 200 SMA and 50 EMA.

Per the BTC/USD chart above, the long-term trend is bullish as the price exceeds the 200 SMA. Later on, the price moves above the 50 EMA, while the 50 EMA is above the 200 SMA. Therefore, the bullish trend above both MA levels is very strong, and any buying point has a higher possibility of hitting the target level.

Another approach is to use EMA as a dynamic support or resistance level. One of the biggest drawbacks of static S/R is that it remains fixed at a given level. On the other hand, dynamic S/R levels move with the price and can react immediately. Therefore, this method is suitable for finding near-term reversal points toward the trend.

The above BTC/USD chart demonstrates how the EMA works as a dynamic support. Buying a crypto asset from the dynamic support level has a better risk-to-reward ratio. The 50-day and 200-day moving averages can be used to identify dynamic support and resistance zones from which prices are more likely to react.

When one moving average moves above another, it creates a profitable trading opportunity. One of the most effective crossover strategies is known as the golden cross. When the 50 EMA moves above the 200 SMA, it indicates that short-term bulls are becoming more aggressive, while long-term traders are still bullish.

The example above shows how the golden cross indicates increased bullishness in the BTC/USD price. This is applicable in any time frame from one minute to one week.

Exponential Moving Average vs. Simple Moving Average

Cryptocurrency trading differs from traditional financial instruments because big surges and collapses in price are very common with crypto. Therefore, traders aren’t always certain when it comes to choosing the right MA. Moreover, long-term HODLers and intraday traders remain active in cryptocurrency trading, which raises the question of whether they should use EMA or SMA.

SMA uses the average price of the last number of candles without reference to recent price change. Therefore, SMA works well with a higher number of candles. As a result, long-term traders and HODLers can use SMA to identify the broader market context. For example, a 200 SMA provides more accurate indications of a long-term trend than a 200 EMA.

The BTC/USD chart above shows that the 200 EMA is closer to the price than the 200 SMA 200 because EMA focuses on the most recent price changes, which aren’t as much of a necessity for long-term traders.

On the other hand, even if traders know where the long-term trend is heading, it’s important to match it with the short-term trend. It isn’t advisable to buy a crypto asset based solely on its price above the 200 SMA. Moreover, intraday traders don’t bother with where the long-term trend is heading, or they just trade a portion of the broader market trend. 

Therefore, EMAs with lower values like 20, 30, 50 or 100 work well for finding the short-term market trend. Optimal success in EMA trading comes from how the trader utilizes the SMA and EMA together to find the most accurate trend.

The BTC/USDchart above shows how the price is trending up both long- and short-term, identified by the 20 EMA and 200 SMA.

Best Exponential Moving Average Indicator Pairings

In financial trading, investors have to anticipate the price movement because  no one knows for certain where it’s headed. Using multiple tools, investors can increase the probability of successful trades. Therefore, the EMA needs to be combined with other indicators. The following are some of these possible pairings.

 indicator is an important technical oscillator that indicates overbought and oversold positions. The RSI indicator price chart shows in a separate window, and moves from a level of 0 to 100. 

When the RSI indicator starts to move up above 30, it’s a strong indication that the market may initiate a bullish trend. Later on, a potential buying opportunity may come when the price moves up from the dynamic 20 EMA while the RSI indicator is still bullish.

The above BTC/USD chart shows that the BTC/USD price faces static support at $40,684,  and moves above the dynamic 20 EMA with a strong bullish H4 close. In the meantime, RSI is trending higher and has moved above 50. As a result, the price extends to $68,000, indicating a strong bullish trend.

, or average directional index, is another momentum indicator that helps traders identify a trend’s strength. ADX remains in a separate window and moves from 0 to 100 and even beyond. For cryptocurrency trading, investors should closely monitor the ADX level while opening a buy position. 

Before opening a buy trade using the EMA and ADX, make sure to follow these steps and conditions:

The BTC/USD intraday chart above shows Bitcoin’s price moving up from the horizontal support level of $50,382.35, and closing with a bullish candle above the dynamic 20 EMA. Meanwhile, the ADX is above 20, indicating that the current bullish trend is strong. 

To summarize, using EMA to determine entries can be profitable if traders combine it with other trading tools. EMA remains popular among traders because it places more weight on the latest price data, lagging less than other technical indicators. Similar to all moving averages, EMA works best in the midst of a strong trend in the market.

Exponential Moving Average: How to Use EMA to Trade Volatile Crypto

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