The price of Bitcoin (BTC) has dropped significantly after initially showing strong gains in early trading hours. This downturn follows a major hack event in the cryptocurrency industry. Previously on track to surpass the $100,000 milestone, Bitcoin is now struggling to maintain support above $96,000.
Bitcoin Price Volatility Explained
At the time of writing, Bitcoin's price hovers just below $96,000. According to market data, BTC is trading at $95,885, marking a 2.23% decline over the past 24 hours. The coin has experienced high volatility, dipping from a daily high of $99,497.96 to a low of $95,829.33.
While Bitcoin has remained above $90,000 since mid-November 2024, breaking the $100,000 resistance level has proven challenging. Historically, BTC reclaims its All-Time High (ATH) at least once per month—a pattern it has yet to repeat in February.
Market indicators suggest potential recovery, with trading volume surging 45.7% to $45.02 billion, signaling strong liquidity. However, earlier analysis warned of cautious trends, which later materialized as Bitcoin relinquished its 5% intraday gains.
Key Factors Behind the Bitcoin Selloff
1. Bybit Wallet Exploit Triggers Panic
The crash was catalyzed by a massive security breach at Bybit, where hackers stole over $1.4 billion in Ethereum (ETH). This incident—one of the largest in crypto history—sparked widespread market fear, reversing ETH's growth and destabilizing Bitcoin's price.
2. Regulatory Developments
The selloff coincided with Coinbase's announcement that the SEC agreed to dismiss its lawsuit against the exchange. While pending final approval, this news helped mitigate further BTC price declines, preventing a drop below $90,000.
Bitcoin Price Outlook: Recovery Catalysts
Despite the downturn, several factors could drive Bitcoin's rebound:
- Institutional Demand: MicroStrategy plans a $2 billion BTC purchase via a private debt offering, reinforcing institutional confidence.
- Supply Crunch: Nation-state adoption and rising demand continue to outpace available supply.
- Market Resilience: BTC has historically recovered from steep drawdowns, with bullish momentum often resurfacing after corrections.
👉 Discover how institutional investments are shaping Bitcoin's future
FAQ: Bitcoin Price Crash
Q1: Will Bitcoin drop below $90,000?
A: While volatility persists, strong liquidity and institutional buys suggest $90,000 is a firm support level.
Q2: How does the Bybit hack affect Bitcoin?
A: The exploit eroded market sentiment, but Bitcoin’s fundamentals remain intact due to its decentralized nature.
Q3: What’s the long-term forecast for BTC?
A: Analysts remain bullish, citing ETF inflows, halving effects, and adoption by corporations and governments.
Market Trends to Watch
- Whale Activity: A Satoshi-era wallet moved $2.1B in BTC after 14 years—monitor for potential sell pressure.
- ETF Growth: BlackRock’s IBIT Bitcoin ETF ranks as its third-most profitable fund, signaling strong investor interest.
👉 Explore Bitcoin ETFs and their market impact
Key Takeaways
- Bitcoin faces short-term pressure but retains long-term growth drivers.
- Regulatory clarity and institutional demand may fuel recovery.
- Always conduct independent research before investing.
Disclaimer: This content reflects market conditions and the author’s analysis. Cryptocurrency investments carry risks; readers should exercise due diligence.
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