Crypto markets decline as investors react to the Bybit hack and U.S. economic policies, driving Bitcoin and altcoins lower.
Bitcoin Plunges Below $90K
Bitcoin dropped below $90,000, hitting its lowest level since November 18. Market concerns over U.S. tariffs added to investor anxiety following a $1.5 billion hack of ether from the Bybit exchange. The cryptocurrency declined 7.25% to $87,169.76.
Macroeconomic Pressures Weigh on Crypto
Global investors are on edge amid signs of a weakening U.S. economy. President Donald Trump reaffirmed plans to impose a 25% tariff on imports from Canada and Mexico starting in March. The uncertainty has driven investors toward U.S. Treasuries, sending yields to two-month lows.
Analysts Cite Multiple Factors for Decline
“The macroeconomic situation has been the main reason for the price decline in the last few hours,” said Marcel Heinrichsmeier, a crypto assets analyst at DZ Bank. He also noted that the Bybit hack and recent turmoil in memecoins contributed to a worsening market mood.
Altcoins Suffer Sharper Losses
While Bitcoin has dropped nearly 8% in a week, altcoins have faced even heavier losses. Dogecoin, Solana, and Cardano tokens have all declined by around 20%, according to CoinGecko.
Bybit Hack Adds to Market Instability
Bybit, the world’s second-largest crypto exchange after Binance, confirmed last week that hackers stole approximately $1.5 billion in digital assets. Blockchain research firm Elliptic described it as “almost certainly the single largest known theft of any kind in all time.”
Ether Hits Lowest Level Since October
Ether, the second-largest cryptocurrency, has fallen 8.46% to $2,414.29, its lowest since October. Analysts believe the selloff is a delayed response to the Bybit hack. “Markets held up peculiarly well in response to what was expected to be a significant destabilizing event,” said Joseph Edwards, head of research at Enigma Securities.
U.S. Policy Shifts Disappoint Investors
Earlier optimism about the Trump administration’s potential support for a strategic Bitcoin fund and regulatory changes has faded. Despite crypto-friendly appointments, no significant policy shifts have materialized.
Bitcoin ETFs See Record Outflows
Bitcoin-backed exchange-traded funds (ETFs) are experiencing substantial outflows. LSEG data shows net monthly withdrawals of approximately $644 million, the largest since ETF trading began in January 2024.
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