Bitcoin Slips Below $100K Amid Inflation Fears and Bybit Hack

Bitcoin's price has remained below the crucial $100,000 threshold this week, as the market grapples 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.

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