Despite a previous attempt to end the month on a high note, Bitcoin (BTC) has seen a sudden decline, losing its recent gains in a turbulent market. As of now, Bitcoin's price has dropped 1.64% over the past 24 hours, sitting at $67,328.02. This follows a 0.99% decline in the overall crypto market cap.

Market Influences and Bearish Trends

Bitcoin's price remained stable after the release of the Federal Reserve's favored inflation measure, the Personal Consumption Expenditure (PCE), which increased by 0.2% in April as anticipated. However, the market was soon unsettled by news of a hack at DMM Bitcoin, a Japanese crypto trading platform. This hacking incident, involving over $305 million being stolen, has caused investors to recall past major hacks like those of Mt.Gox and Coincheck, which also involved Japanese platforms.

Such hacking events typically have a negative impact on the market. Although it’s early to predict the long-term effects, many investors are reacting quickly to avoid potential losses from unexpected downturns.

Influence of Options Market on Bitcoin's Price

Another factor contributing to Bitcoin's price drop is the expiration of over $8 billion in BTC and Ethereum options. This includes 69,000 Bitcoin options valued at $4.7 billion and 920,000 Ethereum options worth $3.5 billion. The substantial volume of options expiring has increased market leverage, leading to higher volatility.

Positive Indicators for Bitcoin's Future

Despite the recent downturn, Bitcoin has strong growth potential. Institutional demand remains strong, bolstered by spot Bitcoin ETF products from major issuers like BlackRock and Fidelity Investments. Countries like Hong Kong and the United Kingdom have also joined the U.S., Canada, and Brazil in offering spot Bitcoin ETFs, indicating growing mainstream acceptance of the asset.

Renowned trader Peter Brandt has noted a potential bullish pattern for Bitcoin, predicting an early cup-and-handle formation. According to Brandt, the cup portion is complete, and the handle is yet to form, suggesting a possible breakout after a brief downtrend.

Conclusion

While Bitcoin is currently experiencing a price dip due to market turbulence and external events, its long-term growth potential remains robust. With strong institutional support and emerging financial products, Bitcoin is likely to recover and continue its upward trajectory.