Since breaking the $100,000 milestone in late 2024, Bitcoin has entered a consolidation phase, trading mostly sideways.
While some investors may view the lack of immediate upward momentum as a concern, Cathie Wood, CEO of ARK Investment Management, sees it as a positive development.
“We would not want the market to continue straight up to the right without looking back. We want a wall of worry,” Wood said at the Cboe Global Markets 2025 Bitcoin Outlook webinar. This sentiment reflects the idea that a period of stability and recalibration is essential for long-term price appreciation, particularly as institutional adoption of Bitcoin is still in its early stages.
With nearly 20 million of Bitcoin’s total 21 million supply already mined, Wood emphasized that institutional investors are only now beginning to enter the market. This gradual adoption, coupled with evolving regulatory clarity, could set the stage for Bitcoin’s next major rally.
Bybit Hack Shakes Confidence in Crypto Security
While Bitcoin’s price remains stable, the broader cryptocurrency market was rocked by news of a massive security breach. Dubai-based cryptocurrency exchange Bybit confirmed on Friday that it suffered what could be the largest hack in crypto history, with hackers stealing approximately $1.5 billion worth of Ethereum.
Bybit CEO Ben Zhou revealed that the attack occurred during a routine transfer from a cold wallet to a warm wallet. The hackers manipulated the transaction, altering the underlying smart contract logic to gain control of the cold wallet. Despite the staggering loss, Zhou reassured users that Bybit remains solvent and that all client assets are fully backed.
In response, the exchange has processed over 580,000 withdrawal requests and launched a “recovery bounty program,” offering up to 10% of the recovered funds as a reward to cybersecurity experts. However, with research firm Arkham Intelligence confirming that the stolen Ethereum is already being moved and sold, recovering the full amount remains uncertain.
The incident underscores ongoing security concerns in the crypto industry. In 2024 alone, hackers stole over $2.2 billion from crypto platforms, according to blockchain analysis firm Chainalysis.
While Bitcoin’s price remains stable, the broader cryptocurrency market was rocked by news of a massive security breach. Dubai-based cryptocurrency exchange Bybit confirmed on Friday that it suffered what could be the largest hack in crypto history, with hackers stealing approximately $1.5 billion worth of Ethereum.
Bybit CEO Ben Zhou revealed that the attack occurred during a routine transfer from a cold wallet to a warm wallet. The hackers manipulated the transaction, altering the underlying smart contract logic to gain control of the cold wallet. Despite the staggering loss, Zhou reassured users that Bybit remains solvent and that all client assets are fully backed.
In response, the exchange has processed over 580,000 withdrawal requests and launched a “recovery bounty program,” offering up to 10% of the recovered funds as a reward to cybersecurity experts. However, with research firm Arkham Intelligence confirming that the stolen Ethereum is already being moved and sold, recovering the full amount remains uncertain.
The incident underscores ongoing security concerns in the crypto industry. In 2024 alone, hackers stole over $2.2 billion from crypto platforms, according to blockchain analysis firm Chainalysis.
Regulatory Landscape Shifts as SEC Drops Coinbase Lawsuit
Amid security concerns, the regulatory environment for cryptocurrencies is also undergoing a transformation. On Friday, Coinbase (COIN) CEO Brian Armstrong announced that the U.S. Securities and Exchange Commission (SEC) is dropping its lawsuit against the exchange.
Amid security concerns, the regulatory environment for cryptocurrencies is also undergoing a transformation. On Friday, Coinbase (COIN) CEO Brian Armstrong announced that the U.S. Securities and Exchange Commission (SEC) is dropping its lawsuit against the exchange.
This decision signals a potential shift toward a more crypto-friendly regulatory framework under the second Trump administration. SEC Commissioner Hester Peirce has advocated for clearer guidelines, emphasizing the need for a legal framework that does not require businesses to navigate excessive legal hurdles to operate.
Cathie Wood sees regulatory clarity as a catalyst for further innovation in Bitcoin and digital assets. The establishment of a U.S. Bitcoin reserve, as proposed by President Trump, could further legitimize the asset and drive broader institutional adoption.
Meanwhile, the success of Bitcoin exchange-traded funds (ETFs) continues to grow. U.S.-listed Bitcoin ETFs now hold over $120 billion in assets, surpassing gold ETFs. Cboe’s global head of ETF listings, Rob Marrocco, believes the next step is to expand the ecosystem surrounding these ETFs, including the launch of Bitcoin ETF index options.
The Future of Bitcoin and Crypto Markets
Despite recent turbulence, Bitcoin remains on solid footing. The increasing involvement of institutional investors, the potential for more favorable regulations, and the expanding ETF market all point to a promising future.
However, security vulnerabilities, as highlighted by the Bybit hack, remain a major challenge for the broader crypto space. While some investors are calling for stricter oversight, others argue that excessive regulation could stifle innovation.
For now, Bitcoin’s ability to hold above $100,000 suggests that the market is finding stability. Whether this is the calm before another rally or a prolonged period of consolidation will depend on how the industry navigates security risks, regulatory shifts, and investor sentiment in the months ahead.
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