Bitcoin Stays Below $100K Amid Bybit Hack and Inflation Concerns While Analysts Suggest Potential for Future Rally

• This week, Bitcoin’s price remained under the crucial $100,000 threshold as the market grappled with inflation fears and the impact of the recent Bybit hack.

• The largest cryptocurrency experienced minimal movement until Friday, when it fell sharply due to the extensive hack of the Bybit exchange, highlighting vulnerabilities in the crypto sector.

• “Bitcoin is going to bore you to a million dollars,” noted a popular quote circulating on Crypto Twitter, reflecting traders’ current frustrations with lackluster price action.

This article discusses Bitcoin’s recent price stability, the Bybit hack’s effects on the market, and the outlook for crypto ETFs amid economic uncertainty.

Market Overview: Bitcoin Faces Challenges Amid Broader Economic Concerns

Bitcoin has experienced significant fluctuations over the past week, with its price hovering around $96,750 after reaching a high of $99,262 on Friday. The aftermath of the Bybit hack, which accounted for over $1.4 billion in losses, has compounded existing apprehensions regarding U.S. inflation. This situation has led to a selloff in risk assets, affecting investor confidence in cryptocurrencies.

Impact of the Bybit Hack on Cryptocurrency Prices

The recent hack of the Bybit exchange represents a critical instance in the ongoing dialogue about security within the cryptocurrency landscape. Following the incident, Bitcoin’s market capitalization fell sharply as traders reacted to the unexpected breach. Analysts suggest that while this hack is one of the most significant in terms of value, it also serves as a stark reminder of the risks associated with digital assets. CoinGecko indicates Bitcoin’s value dipped below $95,000, causing concern among investors regarding the sustainability of the ongoing bullish sentiment that had characterized early 2025.

ETF Market Trends: Exit Strategies Amid Volatility

The ongoing volatility in Bitcoin’s price has resulted in negative outflows from new American exchange-traded funds (ETFs). Data from Farside Investors revealed that approximately $365 million left the ten major crypto funds just on Thursday, marking a significant downturn for the week. The average outflow for the rest of the week remained between $60-$65 million daily, raising critical questions about the future sustainability of these financial products.

Institutional Perspectives: A Bullish Outlook Despite Challenges

Despite recent downturns, investment firm Bernstein maintains a bullish outlook on Bitcoin. Their analysis points to a forthcoming rally fueled by increased adoption from banks and institutional investors, as noted in their Monday report. They forecast a potential 2025 price of $200,000, highlighting the optimistic sentiments surrounding Bitcoin’s growth trajectory and its potential as a mainstream asset.

Company Spotlight: Fold’s Public Debut

In an encouraging sign for the industry, Fold, a financial services provider that rewards users with Bitcoin, went public on the Nasdaq Composite this week. The excitement was palpable on opening day, with shares initially rising, demonstrating investor interest. However, the volatility in broader markets soon drove the price below $7 by week’s end, underscoring the challenges still facing Bitcoin-linked enterprises.

DOG•GO•TO•THE•MOON: Expanding Across Chains

Meanwhile, the Bitcoin Runes meme coin, DOG•GO•TO•THE•MOON (DOG), has successfully moved onto the Solana blockchain. This expansion aims to broaden its accessibility and presence in the market. While some Bitcoin purists might be skeptical of this development, it could foster greater market engagement, with DOG experiencing a slight uptick after its cross-chain debut, although it still reflects a decrease of 72% from its all-time high.

Conclusion

In summary, Bitcoin’s current position below $100,000 amid inflationary pressures and significant market hacks calls for cautious optimism. While the ETF outflows paint a worrying picture for institutional investment, the bullish sentiment from analysts at Bernstein and new company listings like Fold hint at the resilience and evolving nature of the cryptocurrency market. Investors are urged to stay informed and assess their strategies in light of these developments.