Crypto Crisis: Bybit Hack and Tariff Concerns Shake Market Confidence
The cryptocurrency market experienced a significant downturn following the theft of $1.5 billion worth of Ether from the Bybit exchange. The situation was further exacerbated by growing concerns over new U.S. tariff policies, dealing a major blow to investor confidence.
On Tuesday, Bitcoin's price plummeted 7.25% to $87,169.76, marking its lowest level since November 18, according to Reuters.
Global economic uncertainty, coupled with former U.S. President Donald Trump's proposed tariff measures, has driven investors toward safer assets. The surge in U.S. Treasury bond yields has also contributed to Bitcoin’s sharp decline, pushing it to a two-month low.
Marcel Heinrichsmeyer, an analyst at DZ Bank, stated, "Macroeconomic conditions are the primary reason behind the crypto market slump. The Bybit hack and the volatility in the memecoin sector have eroded investor confidence."
Ether also suffered a sharp drop of 8.46%, falling to $2,414.29, its lowest level since October. Meanwhile, Dogecoin, Solana, and Cardano have lost nearly 20% of their value.
Market analysts believe that while the immediate impact of the Bybit hack was limited, its long-term consequences have weakened investor confidence, leading to a more pronounced decline in crypto valuations.
