In May, hackers stole more than $90 million in digital assets from cryptocurrency exchanges and other platforms, a quadrupling of illicit activity from the month prior. Bitcoin heading to $1 million by 2029, fueled by institutional adoption, was big news. Whether it’s the recent barrage of hacks or the wave of optimistic price predictions flooding the web, these hopeful claims exemplify the fickle and erratic world of crypto.
DeFi Platforms Targeted in April's Crypto Hacks
In April, cryptocurrency-related thefts saw a dramatic increase, with hackers making off with $92 million in digital assets across 15 separate incidents. This is a staggering 124% increase from just March, when $41 million was taken. Immunefi, a bug bounty platform focused on protecting user funds, shared a shocking statistic. In fact, all of the attacks reported in April specifically targeted decentralized finance (DeFi) platforms.
Despite the turbulence, centralized exchanges had zero incidents of lost or stolen funds for the month. This indicates that cybercriminals might be diverting efforts to exploit the weaknesses in DeFi infrastructures. In April, hackers perpetrated the largest single attack on the open-source platform UPCX. On this breach alone, total losses exceeded $70 million.
Immunefi shields $190 billion worth of user funds. It has to-date directly funneled $116+ million into the pockets of white hat hackers in bounty rewards. These bounties encourage security researchers to find and report vulnerabilities before they can be exploited by bad actors. The rise in DeFi exploits underscores the ongoing need for robust security measures and continuous monitoring within the decentralized finance space.
Market Movements and Regulatory Developments
Even with such a dramatic uptick in hacking events, many cryptocurrencies are seeing positive price movements. This week’s top gainer was the Virtuals Protocol (VIRTUAL) token, which climbed by more than 103%. Coinmarketcap.com Furthermore, the Solayer (LAYER) token experienced a significant surge of more than 29% in value over the same timeframe.
Regulatory developments were another major force impacting the cryptocurrency ecosystem this past quarter. Roman Storm, the creator of the crypto mixing service Tornado Cash, is in deep trouble. He is charged with conspiracy to launder more than $1 billion in cryptocurrency through the platform. His trial is not set to begin until next July. The crypto community has been following it deeply, because the outcome will likely set a precedent for how we can hold developers of open-source software liable for the actions of their users.
The DeFi Education Fund has been outspoken about its opposition to the SEC’s case.
"This kind of legal environment does not just chill innovation — it freezes it." - DeFi Education Fund
Despite the bearish sentiment from security issues and increased regulatory scrutiny, XRP price predictions in the long-term are still looking up. Some market watchers like Fundstrat’s Tom Lee argue that Bitcoin’s growing institutional adoption could fuel the “structural” inflows needed for it to top gold’s market cap. FOMO Crypto’s website claims that the recent surge could help propel its price over $1 million as soon as 2029.
"not only absurd in principle, but it sets a precedent that potentially chills all crypto development in the United States" - DeFi Education Fund
Bitcoin's Bullish Outlook
By the 2025 market cycle, we see Bitcoin going above $200,000 based on our most likely scenario. With increased governmental adoption, it could even go up to $500,000! The recent approval of Bitcoin ETFs has helped to light the institutional match. Today, institutional investors can navigate the complicated crypto market with a higher level of ease.
André Dragosch shared an in-house prediction.
"Our in-house prediction is $1 million by 2029. So that Bitcoin will match gold's market cap and total addressable market by 2029," - André Dragosch
For the 2025 market cycle, Bitcoin may surpass $200,000 in the "base case" scenario and $500,000 with increased governmental adoption. The approval of Bitcoin ETFs has further fueled institutional interest, making it easier for traditional investors to gain exposure to the cryptocurrency.
