Key Takeaways
- Balancer hack: Evidence suggests months of planning and expert execution.
- Bitcoin: Dropped below $106K amid “Extreme Fear.”
- Crypto ETFs: $360M in weekly outflows; Solana bucks the trend with record inflows.
Balancer Hack Points to a Seasoned Attacker
The fallout from Balancer’s $116 million exploit continues, with new onchain data suggesting the attack was months in the making. The decentralized exchange (DEX) was hit on Monday, and analysts now say the attacker demonstrated “professional-level” operational security.
Blockchain data reveals the exploiter funded their wallet through small 0.1 ETH deposits from the privacy protocol Tornado Cash to evade detection. Conor Grogan, Coinbase’s director, noted the attacker had at least 100 ETH stored in Tornado Cash contracts, hinting at links to prior hacks. Balancer has since offered a 20% white hat bounty for the return of the stolen assets.
Bitcoin Slips Below $106K as Market Fear Surges
Market sentiment took a sharp hit on Tuesday after Bitcoin briefly dipped below $106,000 — its lowest level since mid-October. The Crypto Fear & Greed Index plunged to 21 out of 100, signaling “Extreme Fear,” marking one of the weakest readings since April.
The index has oscillated between “Neutral” and “Extreme Fear” zones following a volatile October, when Bitcoin corrected from its early-month highs of $126,000. Analysts attribute the decline to waning institutional activity, cautious trading, and doubts about further Federal Reserve rate cuts this year.
Fed Uncertainty Sparks $360M in Crypto Outflows
Crypto investment products saw $360 million in outflows last week as investors reacted to hawkish remarks from Federal Reserve Chair Jerome Powell. Bitcoin ETFs accounted for the bulk of redemptions, shedding $946 million.
Also Read: Crypto Market Hit by $795M Weekly Outflows Amid Trump Tariff Turmoil
However, not all assets followed the downward trend. Solana emerged as a bright spot, drawing $421 million in inflows — its second-largest on record — thanks to strong demand for new U.S.-based ETFs. Ethereum also managed $57.6 million in inflows, though broader sentiment remains mixed.
Today’s crypto landscape reflects deepening uncertainty — from sophisticated DeFi exploits to market-wide fear driven by macroeconomic caution. As investors weigh the Federal Reserve’s next moves, the resilience of assets like Solana offers a reminder that selective optimism still persists within the broader downturn.
