The crypto market had regained momentum over the past week, but the rebound has been short-lived. This Thursday, Bitcoin and Ethereum fell sharply again, with declines exceeding 5% in both cases. And unlike other recent corrections, this time it was not due to a global movement of risk aversion, but to an old ghost that the sector thought had been overcome: security in decentralized finance platforms. The session dawned with widespread red numbers, but the epicenter of the tremor was clear: a new massive hack.
According to the first information from the sector, “the acceleration in the falls of bitcoin and other cryptoassets began late yesterday, coinciding with the news of the hacking of Yearn Finance”. The attack, confirmed by the platform itself, has put its liquidity in check and has reactivated fear among investors.
Authorities in the crypto ecosystem explained that the hack occurred “through the issuance in a single transaction of a virtually unlimited amount of the company’s own token, yETH, some 235 million units.”
The result was an immediate collapse of the token structure, unable to absorb such a massive issuance. The first estimates indicate that “reports put the movements recorded around the token at around $2.8 million”, before the flight of assets to other platforms was detected.
Yearn Finance is not a minor player. It is one of the best-known DeFi platforms, created to automate investments and optimize returns. Its sudden fall after the attack has acted as a reminder that the DeFi ecosystem remains particularly vulnerable.
Not an isolated case: another hack last week in South Korea
The psychological impact of the attack is multiplied by the fact that it comes just a few days after another serious incident: “one of South Korea’s main trading markets, Upbit, also recorded a hacking of more than 30 million dollars”. Two major attacks in less than a week are enough to revive distrust in a market that is very sensitive to any sign of weakness.
Bitcoin plummets to $86,000 and erases its rebound
At the opening of Europe, while Nasdaq futures barely gave up 1%, “declines exceeded 5% in bitcoin and ether”. The reaction was immediate: investors reduced their positions and the rebound achieved during the week evaporated.
The mother cryptocurrency fell sharply: “In its fall bitcoin retreats to $86,000, compared to the $92,000 it was touching on Sunday”. This retreat brings its price back to dangerously close to $82,000, the seven-month low reached on November 21 that sparked fears of a possible cycle change.
The magnitude of the corrective also affects the annual balance sheet: “Today’s wave of sales aggravates the cumulative falls in bitcoin and ether prices for the year to 7% and 14%, respectively”.
Ethereum loses $3,000
The second big casualty of the day was Ethereum: “The ether price loses the $3,000 barrier in its corrective”, dropping to $2,800 just 24 hours after touching $3,050.
A particularly discouraging move for an asset that usually sets the pulse of the DeFi sector, just the segment hit by hacks.
The red spreads to the whole market: all altcoins drop
The debacle was not limited to the two major cryptocurrencies. The day was also bloody for alternative projects: “Losses in today’s session exceed 5% in the share prices of altcoins such as XRP, solana, dogecoin, cardano, hyperliquid and stellar.”
In a sector where confidence is key, each attack generates a contagion effect that punishes the market as a whole, especially less liquid assets.
Experts agree that the timing of the attack was particularly damaging. The market was trying to recover after several weeks of pressure, and sentiment was somewhat more optimistic thanks to the technical performance of Bitcoin and the stabilization of international stock markets.
