Bitcoin has plunged over 8.8% since Friday following the devastating Bybit hack, with experts now warning of a potential extended slump to the $73,000 level. The leading cryptocurrency dropped from its recent peak of $99,493 to $91,500, breaking below its critical 97-day trading range.
Market Analysis: What’s Driving the Crash?
Several key factors are contributing to Bitcoin’s current downward trajectory:
- The historic Bybit hack rattling market confidence
- Breaking below the key $95,000 support level
- ETF-related selling pressure from arbitrage unwinding
- Extremely tight Bollinger Bands signaling incoming volatility
Expert Predictions Point to Further Downside
BlockTower Capital’s Ari Paul provides a sobering outlook, suggesting Bitcoin could retrace to the $73,000-$77,000 range. This prediction aligns with recent technical analysis showing Bitcoin’s critical test at $96,000.
BitMEX founder Arthur Hayes warns of “Bitcoin goblin town incoming,” citing complex ETF dynamics. According to 10x Research, 56% of recent ETF inflows are tied to arbitrage strategies rather than genuine long-term investment, suggesting potential selling pressure ahead.
Is This Really The End of The Bull Run?
Despite the bearish short-term outlook, industry veterans remain optimistic about Bitcoin’s longer-term prospects. Placeholder VC’s Chris Burniske draws parallels to previous bull market corrections, noting that similar drawdowns occurred in 2021 without ending the overall uptrend.
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At press time, BTC trades at $90,537, with technical indicators suggesting continued volatility ahead. Traders should watch the $91,000 support level closely, as a break below could accelerate the decline toward the projected $73,000 target.