Bitcoin's price is plummeting, and the market is reeling from the impact of the Options expiry and the DMM Exchange hack. Despite earlier gains, Bitcoin is now trading at a 1.64% drop in 24 hours, with the combined crypto market cap slipping by 0.99%.

The price of Bitcoin stabilized after the Federal Reserve released its preferred inflation gauge, the Personal Consumption Expenditure (PCE), which rose by 0.2% in April as expected. However, the news of the DMM Bitcoin hack soon followed, sending the market into a tailspin. Hacking events like this typically have a bearish impact on the market, and investors are acting on a knee-jerk impulse to avoid any potential losses.

The Bitcoin price slip is also attributed to the significant dilution in the options market. With more than $8 billion in BTC and Ethereum options, the market is experiencing higher than usual leverage. This has led to a higher-than-usual number of long positions in Bitcoin, which may soon clear off.

Despite the unexpected trend, Bitcoin has a major growth immunity to watch out for. With spot Bitcoin ETF products from top issuers like BlackRock and Fidelity Investments, the institutional demand base remains intact. Recent developments in Hong Kong and the United Kingdom joining the United States, Canada, and Brazil in offering spot Bitcoin ETF and other related products suggest that Bitcoin is going mainstream, which may serve as a primary basis for price recovery in the short term.

Legendary trader Peter Brandt predicts an early cup-and-handle formation for Bitcoin, with the cup part already formed and the handle pattern yet to form. This could lead to a breakout in BTC price, with confirmation happening after a downtrend.