Bitcoin Drops to $95,610 Amid Fed Uncertainty and $1.5B Bybit Hack Shock

Bitcoin slipped 0.8% to $95,610.2 on Monday after a 1% weekly drop, as investors remained cautious over the U.S. interest rate outlook. Weak economic data fueled uncertainty, with Services PMI falling to 49.7 in February from 52.9 and Michigan's consumer sentiment index hitting a 15-month low at 64.7. Concerns over tariffs and inflationary pressures kept the Federal Reserve hawkish, adding to market volatility.

A major security breach at Bybit worsened sentiment, with hackers stealing approximately 401,000 Ethereum ($1.5 billion) in one of the largest crypto heists ever. The hack occurred during a routine transfer between wallets. Bybit CEO Ben Zhou assured users that the platform remains solvent and is working with blockchain forensic teams to trace the stolen funds. The exchange also announced a 10% bounty for information leading to recovery. Amid the fallout, withdrawal requests surged, causing processing delays. Early reports suggest North Korean hacking group Lazarus may be responsible.

The negative sentiment rippled across the crypto market, with major altcoins tumbling. Ethereum fell 2.7% to $2,718.28, while XRP dropped 3.3% to $2.4796. Solana led losses, plunging 7.4%, followed by Cardano (-4.4%) and Polygon (-2.4%). Meme tokens also suffered, with Dogecoin slipping 5.3% and $TRUMP down 7.2%.

With ongoing Fed uncertainty and security concerns, crypto investors remain on edge. Market volatility is expected to persist as traders assess the impact of monetary policy and the latest developments in digital asset security.