Bitcoin (BTC) and other top cryptocurrencies plunged after news of the $1.4 billion Bybit hack became public, sending shockwaves through a recovering market and sending it back into the red. BTC briefly dropped below $95,000, falling to an intraday low of $94.939 before recovering to climb above $96,000. Renewed inflation concerns also impacted investor sentiment. The flagship cryptocurrency is down over 2% and trading just above $96,000. The crypto market cap is down over 2% and currently sits at $3.15 trillion. Microsoft Quantum Breakthrough Rekindles Bitcoin Fears Microsoft has claimed a breakthrough in quantum computing with a new chip that can solve scaling issues that have persistently hampered the field. However, some crypto community members fear the development could accelerate the prospect of quantum computers breaking the encryption that underpins the $3.3 trillion industry. However, Pierre-Luc Dallaire Demers, a scientist-in-residence at the University of Calgary, believes the fears are being blown out of proportion, stating, “I don’t think it changes the timelines for Bitcoin, it’s still 2029 to 2031.” Demers believes older Bitcoin wallets could be threatened by quantum computers, but only in 2029-2030. The new chip, called Majorana1, is named after the Majorana fermion, a type of matter the chip uses to produce qubits. Qubits are units of information that power quantum computers. Majorana fermions do not encounter errors as much as existing quantum solutions, making them, theoretically at least, easier to scale. “Over a long time, Majoranas may overtake superconducting qubits, but probably not before 10 years or so.” Bitcoin (BTC) Sinks Thanks To Bybit Fallout And Inflation Fears Bitcoin (BTC) and the crypto market dropped after Bybit suffered a staggering $1.4 billion hack. Data from CoinGecko showed that BTC , ETH, XRP, and other high-cap coins are trading in the red. BTC is down over 2% as it briefly tanked below $95,000 before recovering and moving to its current level. Futures traders were also hit, with over 192,000 traders liquidated and $570 million in total positions closed in the past 24 hours. Sentiment around BTC was dampened further after weaker-than-expected economic data showed that inflation might not go away anytime soon. Bybit reported that a large transaction was masked and the funds were sent to the hacker’s wallet. Bybit co-founder and CEO Ben Zhou suggested the hackers might have managed to hack the computers of all signers authorizing transactions. Is A Local Bottom Forming? According to analyst Ali Martinez, BTC is witnessing a decline in sell-side pressure, indicating the formation of a local market bottom. The flagship cryptocurrency is trading around $97,600. Martinez shared data from Glassnode to back up his analysis. The data highlighted a sharp decline in the metric since January 2025, suggesting BTC may be forming a local bottom. The analysis aligns with broader crypto market cycle theories suggesting market bottoms are generally followed by an accumulation phase. However, the analyst noted that BTC must stay above key support levels. Rekt Capital highlighted the importance of a close above $97,000 to maintain the higher low as support. Bitcoin (BTC) Price Analysis Bitcoin (BTC) turned bearish and experienced significant volatility after Bybit was hit by a staggering $1.4 billion hack. Bybit confirmed the hack and assured customers their funds were secure. The platform also stated it was fully solvent and could cover all customer losses even if it was unsuccessful in retrieving the stolen funds. BTC was on its way to $100,000 until news of the hack turned markets bearish. The flagship cryptocurrency attempted to move past the 50-day SMA and $100,000 last Friday. However, it lost momentum after reaching this level and ultimately settled at $97,566, registering an increase of nearly 1%. Buyers retained control on Saturday as BTC registered a marginal increase and settled at $97,705. However, sentiment changed on Sunday, with the price dropping 1.51% to slip below $97,000 and settle at $96,225. Selling pressure persisted on Monday as BTC registered a marginal decline and settled at $95,767. BTC faced volatility on Tuesday as sellers drove the price to an intraday low of $93,430. However, it rebounded from this level to reclaim $95,000 and settle at $95,634, ultimately registering a marginal decline. Source: TradingView Sentiment changed on Wednesday as BTC registered an increase of 0.79% and settled at $96,386. Bullish sentiment intensified on Thursday, and BTC registered an increase of nearly 2% to move past the 20-day SMA and $98,000 to settle at $98,251, with analysts expecting a push to $100,000. However, the scenario changed on Friday as news about the Bybit hack emerged, sending markets into the red. As a result, BTC experienced significant volatility before registering a drop of over 2% to slip below the 20-day SMA and settle at $96,184, but not before dropping to an intraday low of $94,829. The current session has seen a recovery, with BTC up almost 1% and trading at $96,850, just below the 20-day SMA. Buyers will look to retain control and push BTC past the 20-day SMA. A move past this level will put BTC back on track to hit $100,000. However, a drop below $95,000 can be expected if sellers regain control. A deeper correction could drive the price to $90,000. Some analysts believe BTC is setting itself up for a move beyond $108,000 and potentially setting a new all-time high. An analysis by Rekt Capital shows early signs of a bullish divergence that could break BTC’s recent bearish momentum. The MACD is also flashing bullish, suggesting an uptrend in the near term. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
