The largest financial hack against Bybit caused Bitcoin to experience an 8.8% drop over the weekend. Bitcoin rose to $99,493 last Friday but now trades at $91,500 which represents a 5.5% decrease from its Monday value. Bitcoin experienced a new slide under its essential 97-day trading zone of $91,000 to $102,000 which foretells more value decline.
Numerous market analysts expect Bitcoin to enter a prolonged decline that may push its prices down to the $73,000 to $77,000 range once again. As a crypto specialist BlockTower Capital chief investment officer Ari Paul states weak equity markets together with deflationary government approaches such as tariffs and massive job cuts will drive Bitcoin prices down for nine months.
Bitcoin Mirrors Gold Trends
Based on his observations of crypto patterns he doubts equities-based cycles apply to crypto but short-term associations could hurt prices now. According to Paul Bitcoin resembles both gold and S&P 500 market behavior which means when gold stays strong Bitcoin achieves limited gains compared to falling stock prices.
He expects the total crypto market to recover in six months but predicts this downturn will last longer than previous recoveries. According to BitMEX founder Arthur Hayes BTC Exchange-Traded Funds will likely create more selling power because traders use futures markets and ETFs to profit.
He showed that IBIT ETF investors have created BTC arbitrage opportunities but their exiting strategy pushes BTC values down. When these funds sell their BTC holdings it will result in BTC dropping to $70,000 according to Hayes. According to 10x Research reports 56% of BTC ETF inflows from January creation serve as arbitrage trading tools instead of bullish bets.
Market technician Tony “The Bull” Severino analyzed how BTC Bollinger Bands have become very tight before major market volatility occurs. Placeholder VC partner Chris Burniske believes the drawdown will not result in a major bear market despite market fluctuations this year. The market awaits more direction from price changes as BTC trades at $90,537 at this moment.
