Bitcoin Plunges After $1.4B ByBit Hack, US Dollar Weakness Offers Support

Bitcoin, the world's leading cryptocurrency, experienced a significant drop below the $95,000 mark following a massive hack on the crypto exchange ByBit, resulting in a loss of approximately $1.4 billion. The hack, which exploited a vulnerability to withdraw Ethereum (ETH) to an unknown address, triggered panic withdrawals from investors and rattled the broader crypto market, affecting major altcoins like Ethereum, XRP, and Solana.

The incident comes as Bitcoin was attempting to reclaim the $100K mark over the weekend, reaching as high as $99,500. Despite the downturn, Bitcoin's seasonal trends suggest a potential recovery in the coming months. Historically, BTC has performed well in spring, with average gains of +11.8% in March, +34.7% in April, and +20% in May, according to CryptoRank data. If these patterns continue, Bitcoin could challenge its January 2025 all-time high of $108,824.

The US Dollar's continued weakness is providing a cushion for Bitcoin's losses. Concerns over former President Donald Trump's trade policies, including a 25% tariff on steel and aluminum and a 10% tariff on Chinese imports, have weighed on the dollar. A weaker dollar typically benefits Bitcoin as investors seek alternative stores of value. Additionally, disappointing US economic data has further pressured the greenback. The flash S&P Global US Composite PMI fell to 50.4 in February from 52.7 in January, signaling slower business activity. Meanwhile, the University of Michigan's Consumer Sentiment Index dropped to a 15-month low of 64.7, reflecting growing economic uncertainty. Inflation expectations are also rising, with consumers predicting a 4.3% price surge in the next year.

These factors suggest that Bitcoin could see continued support as a hedge against the weakening US Dollar. However, uncertainties surrounding US trade policies could introduce volatility, impacting BTC's short-term price movements.

Technical analysis indicates that Bitcoin (BTC/USD) is trading at $95,500, maintaining bearish pressure below the 50 EMA at $96,500 on the 4-hour chart. The price is struggling to break above the key resistance at $96,70