Bybit Hack Update:
Yesterday saw the largest hack in cryptocurrency history, stealing $1.4bn worth of $ETH.
To give you an idea, it currently takes just $15m to knock the price of ETH on SPOT down 2%. If they sell to the market, the price of ETH could easily fall by 50-60%.
The problem is that this is not easy for the hackers, as they have been identified and cannot sell on-chain, OTC or CEX.
Who are the hackers? The Lazarus Group, which is a North Korean government hacking organization.
So what will happen with the hack? The reality is that no one knows, for now USDT and USDC are aware of the situation and if they sell suddenly they can freeze those coins.
The good thing is that in the short term it does not produce any kind of selling pressure for ETH, since they cannot sell everything at once and must divide the stolen ETH into infinitesimal fractions to hide everything onchain.
On the other hand, Bybit must either borrow ETH or buy back ETH through OTC or on the market to cover up the hack, if it does so on the market (which I do not believe) the price of ETH would rise more than 60% due to the depth of the order book.