Crypto Hacking Losses Plunge 60% to $76M in December Amid Extreme Fear

VADODARA, January 1, 2026 — Latest crypto news: Blockchain security firm PeckShield reports a sharp 60% decline in cryptocurrency hacking losses for December. Total losses from 26 major incidents fell to approximately $76 million. This marks a significant drop from November's $194.27 million. Market structure suggests this reduction coincides with a broader liquidity squeeze and extreme fear sentiment.

Market Context & Background

Historical cycles indicate hacking losses often spike during volatile market phases. The November figure of $194.27 million aligned with heightened DeFi activity and cross-chain bridge vulnerabilities. December's decline mirrors a contraction in total value locked (TVL) across protocols. On-chain data indicates reduced exploit surfaces as developers implement EIP-4844 blob transactions for enhanced scalability and security. Related developments include Binance Alpha's recent AIAV listing amid liquidity grabs and Justin Sun's $33M LIT purchase sparking DeFi debates.

What Happened?

According to PeckShield's forensic analysis, December witnessed 26 major hacking incidents. Losses totaled $76 million. This represents a 60.9% decrease month-over-month. The data excludes minor exploits and focuses on significant breaches exceeding $1 million. Primary attack vectors included smart contract vulnerabilities and private key compromises. No single incident dominated the monthly total, indicating a distributed risk profile. The official Ethereum Foundation has emphasized post-merge security upgrades, which may have contributed to the decline.

Technical Analysis & Price Action

Bitcoin currently trades at $87,864, down 0.89% in 24 hours. Volume profile shows weak accumulation near this level. RSI sits at 42, indicating neutral momentum with bearish bias. The critical Fibonacci support at $85,000 (61.8% retracement from all-time high) serves as a Bullish Invalidation level. A break below invalidates the current consolidation structure. Resistance clusters around $92,000, forming an Order Block that must be reclaimed for bullish continuation. The Bearish Invalidation level is set at $95,000, above which short positions become untenable.

By The Numbers

Why It Matters

For institutions, reduced hacking losses lower counterparty risk in DeFi integrations. This may accelerate adoption of yield-bearing protocols. Retail investors face diminished threat of rug pulls and exit scams. The data suggests security audits and zero-knowledge proof implementations are gaining efficacy. Market structure indicates that sustained low losses could form a Fair Value Gap (FVG), attracting capital inflows once sentiment shifts.

Community Sentiment

Market analysts on X highlight the correlation between falling losses and declining TVL. Bulls argue this reflects maturing infrastructure. Bears caution that reduced activity, not improved security, drives the trend. No official statements from major figures like Michael Saylor were available, but sentiment aligns with broader risk-off positioning.

Price Prediction / Future Outlook

Bullish Case: If hacking losses remain below $100 million monthly and Bitcoin holds $85,000 support, a Gamma Squeeze could propel prices toward $95,000 by Q1 2026. Improved security metrics may attract institutional capital.

Bearish Case: A breach of $85,000 support coupled with a resurgence in exploits above $150 million could trigger a liquidity grab toward $80,000. Extreme fear sentiment may persist, delaying recovery.