Bitcoin (BTC) has been trading between $94,000 and $100,000 since early February, reflecting a period of consolidation amid mixed investor sentiment. Institutional demand shows signs of weakening, with US Bitcoin spot ETFs recording a net outflow of $540 million last week. Meanwhile, Bybit's recent $1.4 billion hack has stirred market volatility, though swift action by the exchange has mitigated some risks.
Bitcoin Price Weakens Amid Bybit Hack
Bitcoin's price peaked at $99,475 on Friday before dropping over 3% to $96,258 by Sunday. The decline followed news of the Bybit exchange hack, which triggered $802.37 million in liquidations across the crypto market. Bybit assured users that deposits and withdrawals were fully restored, and CEO Ben Zhou confirmed the exchange had closed its ETH liquidity gap.
👉 Discover how Bybit secured a bridge loan to cover the $1.4 billion shortfall.
QCP Capital's report highlighted Bybit's resilience, noting the availability of liquidity in the lending space. Marc Tillement of the Pyth Data Association emphasized the incident as a wake-up call for centralized exchanges (CEXs), advocating for decentralized alternatives (DEXs) to enhance security.
Fading Institutional Demand for Bitcoin
Bitcoin spot ETFs saw outflows of $540 million last week, extending a two-week trend of weakening demand. Persistent outflows could pressure BTC's price further, potentially testing the $90,000 support level.
Bitcoin Price Forecast: Is Consolidation Ending Soon?
BTC has traded between $94,000 and $100,000 for nearly three weeks. Key levels to watch:
- Downside break: A close below $94,000 may target $90,000.
- Upside break: A move above $100,000 could retest the January high of $106,457.
Technical indicators:
- RSI: 43 (bearish momentum).
- MACD: Neutral, signaling trader indecision.
FAQs
What caused Bitcoin's recent price drop?
The Bybit hack and ETF outflows contributed to the decline, fueling market liquidations.
How did Bybit recover from the hack?
Bybit secured loans and ETH purchases to bridge the $1.4 billion gap, restoring 1:1 client asset coverage.
What are the implications of ETF outflows?
Sustained outflows may indicate waning institutional interest, potentially leading to deeper BTC price corrections.
👉 Explore Bitcoin's market dynamics and stay updated on key trends.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Cryptocurrency investments involve risks, including capital loss.