Bitcoin Dips as Hack Shakes the Crypto Market

We woke up to another Sunday with Bitcoin (BTC) $107,144 still below the six-figure price level, while altcoins remain stagnant. Despite a promising rise on Friday, the situation drastically changed with the historic hack of the largest cryptocurrency exchange by USD value. What is the current state of cryptocurrency?

Bitcoin (BTC)

Following the $1.46 billion loss at ByBit exchange, BTC and other cryptocurrencies dropped sharply. As of this writing, BTC is at $96,450, hovering around this point for nearly 95 days. The price has remained trapped between $101,400 and $94,200, with altcoins suffering greater losses with every decline.

The $98,400 level is critical, and just as it was breached on Friday, the hack occurred. If historical data offers any guidance, the ByBit hack might remain a bottom news story, potentially signaling the end of a 95-day nightmare.

Current State of Cryptocurrencies

The total market capitalization of cryptocurrencies has fallen to $3.2 trillion, with volume plunging by 50% to $68 billion. Ethereum (ETH) $2,624 is fighting to reclaim the $2,800 mark, hoping for a positive divergence that could trigger a rally across altcoins.

Concrete steps are being taken by the SEC regarding dropped cryptocurrency lawsuits. These developments suggest a much-needed rise in altcoins, as the SEC is also showing interest in altcoin ETF applications.

The week’s winner is Maker (MKR) with a 60% increase, alongside FTM, now rebranded as S Coin. Both have soared by 60%. ByBit is borrowing ETH to recover from losses, which hasn’t dealt a fatal blow. Recovery of losses could help disperse the negative atmosphere in the market.

The most significant losses in the last week were seen by RAY, JUP, TRUMP, XDC, SOL, and JTO Coin. The crypto community’s reaction to fraudulent activities in the Solana $170 ecosystem represents a major part of this decline.

PCE data is set to be released soon, and as February comes to a close, historical rising signals indicate that we need to achieve better monthly closes than where we currently stand.