A $293M KelpDAO hack has led to a $9 billion withdrawal from Aave, and the Polymarket contract for Bitcoin dipping to $60,000 by April’s end currently trades at 22¢.
The hack exploited a Layer-2 bridge. Stolen rsETH was used as collateral in Aave’s markets, triggering the mass withdrawal. The incident has pushed risk-off sentiment across crypto, with traders now watching the Bitcoin dip to $60,000 contract more closely.
Market reaction
No active trades have been reported on the contract yet. The DeFi sector’s exposure to bridge vulnerabilities adds selling pressure that could push Bitcoin toward the $60,000 level, but without trading volume, the pricing remains thin.
Why it matters
A $9 billion outflow from a single lending protocol signals real fear about collateral safety. At 22¢, a YES share on Bitcoin reaching $60,000 pays $1, which implies the market sees roughly a 22% chance of that outcome. For that bet to pay off, the current risk-off environment would need to persist or worsen through April.
What to watch
Announcements from Jerome Powell and Steve McClurg could shift sentiment. Any statements from Binance or Coinbase on market stability or exposure to the KelpDAO hack would also affect whether Bitcoin faces sustained downward pressure.
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