Bitcoin price continues to decline on Friday falling over 15% so far this week.#Write2Earn
The total crypto market lost $660 billion in market capitalization and saw $3.68 billion in liquidations this week.
US Bitcoin spot ETF data recorded a total net outflow of $2.48 billion until Thursday.#BinanceSquareFamily #BinaceLaunchpool
Bitcoin (BTC) price extends its decline and trades below $80,000 at the time of writing on Friday, falling over 15% so far this week. This price correction wiped $660 billion of market capitalization from the overall crypto market and saw $3.68 billion in total liquidations this week. Moreover, US Bitcoin spot Exchange Traded Funds (ETFs) data supported BTC’s decline as it recorded a total net outflow of $2.48 billion until Thursday, indicating signs of weakness among institutional investors.
Bybit hack fueled Bitcoin’s sell-off
Bitcoin price declined more than 18% this week from Monday’s high of $96,500 to Friday’s low of $78,258, the highest weekly fall in the last three years. BTC has corrected nearly 30% from its all-time high (ATH) of $109,588 marked on January 20.
This headwind in Bitcoin price was fueled by last week’s news that the Bybit cryptocurrency exchange was compromised, and funds worth $1.4 billion were stolen. The Bybit hack was twice the second largest crypto hack in history, which was PolyNetwork’s $611 million hack in August 2021. The hack eroded market confidence and erased $660 billion of market capitalization from the overall crypto market since the hack, as shown in the graph below.
Crypto total market capitalization chart
Moreover, this compromise caused Bybit to lose around $2 billion in BTC from its reserve, according to CryptoQuant data.
A total of 20,190 BTC has been drained from Bybit’s reserve from Friday to Tuesday, reaching reverse levels seen in early March 2024. This was mostly because the exchange did not stop withdrawals after the ETH hack, and investors tend to withdraw funds given the uncertainty in the market.
Bitcoin Exchange Reserve Bybit chart. Source: CryptoQuant
Crypto Fear and Greed Index hits three-year low as leverage traders got liquidated
The Crypto Fear and Greed Index — a metric that measures the overall sentiment of the cryptocurrency market — dropped to nearly a three-year low this week. The index scored 10 on Thursday, indicating a shift in investor sentiment toward extreme fear, as shown in the graph below.#write2earn🌐💹
