Why Is Bitcoin Down Right Now? Bybit Hack and Reserve Drops Shake the Market
Bitcoin has seen a sharp decline, currently trading below $91,000, as the market reacts to multiple bearish catalysts. The latest drop comes in the wake of a $1.4 billion Bybit hack, which appears to have triggered significant reserve shifts within the exchange, leading to potential liquidity concerns.
However, despite the short-term price dip, CoinCodex’s Bitcoin price prediction remains bullish, forecasting BTC to surpass $100,000 next month and break $150,000 by May 2025.
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Bybit Hack: A $1.4 Billion Blow to the Market
Last Friday, Bybit suffered a massive $1.4 billion hack, primarily affecting Ethereum (ETH) and stETH reserves. While the exchange has since recovered most of its ETH, data from CryptoQuant suggests that Bitcoin and USDT reserves took a major hit instead.
Bitcoin & USDT Reserves Plummet Post-Hack
After the hack, Bybit quickly replenished its ETH holdings, bringing them back to $874 million (down from $1.1 billion). However, this recovery came at a cost—the exchange saw massive outflows in Bitcoin and USDT, leading to further downside pressure on BTC’s price.
Bybit’s Reserve Changes Post-Hack:
ETH Reserves: Recovered to $874M (previously $1.1B)
BTC Reserves: Dropped from $7B to $4.7B (–32%)
USDT Reserves: Plummeted from $3.1B to $1.6B (–48%)
This data suggests that Bybit may have used its BTC and USDT reserves to cover losses from the hack, causing sell pressure on Bitcoin and contributing to its price decline.
Could Bitcoin Drop Further? Or Is This a Buying Opportunity?
Bitcoin’s current support level sits at $90,000, a historically strong rebound zone. While the Bybit situation has led to a short-term sell-off, this level could offer a potential buying opportunity for long-term investors.
Key Takeaways:
$90,000 has historically been a support level for Bitcoin.
If buyers step in, a recovery to $95K+ could be on the horizon.
If selling pressure continues, BTC could test lower support levels.
CoinCodex Bitcoin Price Prediction:
BTC to surpass $100,000 next month
BTC to break $150,000 by May 2025
Despite the short-term volatility, our Bitcoin prediction remains bullish, as institutional interest and adoption continue to rise.
Michael Saylor’s Strategy Buys 20,356 BTC for $1.99B
While short-term traders panic, Michael Saylor’s firm, Strategy (formerly MicroStrategy), is doubling down on Bitcoin, announcing yet another massive BTC purchase.
Strategy’s Latest Bitcoin Buy:
Acquired 20,356 BTC for ~$1.99B
Average Purchase Price: $97,514 per BTC
Total BTC Holdings: 499,096 BTC
Total BTC Acquired Cost: $33.1B (at an average price of $66,357 per BTC)
Saylor’s aggressive accumulation suggests strong institutional confidence in Bitcoin, even during periods of volatility.
Strategy has acquired 20,356 BTC for ~$1.99B at ~$97,514 per bitcoin and has achieved BTC Yield of 6.9% YTD 2025. As of 2/23/2025, we hodl 499,096 $BTC acquired for ~$33.1 billion at ~$66,357 per bitcoin. $MSTR https://t.co/mNWDaXRE7N
— Michael Saylor⚡️ (@saylor) February 24, 2025
Final Thoughts: Should You Buy the Dip?
Bitcoin’s drop BELOW $91,000 was driven by Bybit’s reserve depletion following the $1.4 billion hack. However, with institutional buyers like Strategy continuing to accumulate BTC, this could be a temporary correction rather than the start of a prolonged downturn.
Key Takeaways:
Bitcoin fell below $91,000 following Bybit’s $1.4B hack.
BTC reserves on Bybit dropped 32%, USDT reserves dropped 48%.
$90,000 is a historical support level – potential for a rebound.
Michael Saylor’s Strategy just bought another 20,356 BTC for $1.99B.
CoinCodex predicts BTC to surpass $100,000 next month & $150K by May 2025.
With institutional demand still strong and historical support levels holding, could this be a prime buying opportunity before Bitcoin’s next rally?
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