Bitcoin and Cryptocurrency Prices Reel from a Huge Hack of the Dubai-based Bybit Exchange Amid Fears of Bitcoin Price “Suppression.”

The bitcoin price was sent briefly spiraling on Friday after the hack was revealed, though it's recovered as bitcoin-backing U.S. senator Cynthia Lummis primes

Bitcoin and cryptocurrency prices are reeling from a huge hack of the Dubai-based Bybit exchange amid fears of bitcoin price “suppression.”

The bitcoin price was sent briefly spiraling on Friday after the hack was revealed, though it’s recovered as bitcoin-backing U.S. senator Cynthia Lummis primes the market for a major legislation update.

Now, as Elon Musk appears to be plotting a massive overall of the Federal Reserve, economists are warning a “nightmare” scenario for the Fed could be about to hit the price of bitcoin.

Bitcoin Price Today: Pay Attention To PCE Inflation Data, Economists Say As BTC Price Direction Remains Unclear

Bitcoin was trading at $73,333.3 by 05:46 ET (10:46 GMT) on Monday, up 0.2% on the day, having risen about 1.2% over the past week.

See More: How To Buy Bitcoin (BTC) Right Now

Economists Pay Close Attention To PCE Inflation Data

This coming week, the Federal Reserve’s preferred measure of inflation — the personal consumption expenditures (PCE) price index — is expected to show inflation is still above the Fed’s 2% target.

"Stagflation has definitely re-emerged as a possibility because we have these policies that could hurt consumer demand even while persistent inflation limits the Federal Reserve’s ability to maneuver,” Jack McIntyre, portfolio manager for Brandywine Global's fixed income strategies, told Reuters.

“What continues to concern us more than the risk of inflation is stagflation,” Tim Urbanowicz, chief investment strategist at Innovator Capital Management, added.

Meanwhile, Jon Brager, a portfolio manager at Palmer Square Capital Management, told Quartz the Fed could even hike interest rates this year.

"A major price crash seems fairly unlikely in the short term unless a significant macroeconomic, geopolitical shock or regulatory shift occurs and in saying that most are betting on favorable regulatory shifts, especially in America."

Bitcoin Price Direction Still Unclear

The bitcoin price rally has stalled over the last few months, and the cryptocurrency now appears to be caught between two extremes.

On the one hand, there’s optimism over institutional inflows, particularly into bitcoin exchange-traded funds (ETFs), and the potential for favorable regulatory shifts, especially in the U.S.

Countering this bullishness are macroeconomic uncertainties, including the potential for a global trade war and interest rate decisions from the Federal Reserve. These factors are contributing to a "wait-and-see" approach among investors.

The bitcoin price has been languishing under $100,000 per bitcoin through February, raising the risk for some analysts that the bitcoin price might make a major move this week.

"Bitcoin continues to move strictly to the side, while the crypto market dynamics generally resemble a bouncing ball, getting lower and lower over time," Alex Kuptsikevich, FxPro chief market analyst, said in emailed comments.

“The local resistance has moved to the $3.20 trillion area, while the lower boundary has remained near $3.10 trillion for the last three weeks. Thus, the market is accumulating risks that we will get a compressed spring effect with a sharp move in one direction in the coming days.”