Bitcoin’s price falls to its lowest in 3 months following the Bybit hack, CSN News

The largest cryptocurrency in the world saw a steep drop of up to 7.5% on February 25, before stabilising around $89,314. The market has been shook by growing uncertainty fueled by U.S. Tariff concerns and the massive hack of Bybit last week.

Trump’s tariffs increase crypto-uncertainty

The market took a beating after U.S. Donald Trump reiterated his plans to implement a 25% tariff on Canadian imports and Mexican exports. This is set to come into effect in early march. This has rekindled fears of potential trade wars and inflation, driving investors towards safer assets, such as U.S. Treasury bond, which has seen a sharp rise.

Marcel Heinrichsmeier a crypto assets analysts at DZ Bank highlighted the macroeconomic stress, saying: “The ongoing tariff announcements and protectionist stance by the Trump administration led to uncertainty and risk-off, fuelling fears about a resurgence in trade wars and inflation.” He continued, “The Bybit Hack and the memecoin chaos of the last few weeks has contributed to a general worse mood in crypto market than it was at the start of the year.” (Cited by Reuters.)

What happened to the Bybit hacking?

The recent collapse in Bitcoin’s price has also been linked to last week’s $1.5 billion (€1.38 billion) hack of Dubai-based Bybit, the world’s second-largest crypto exchange (behind Binance). Hackers stole the contents of an Ethereum wallet. According to Elliptic blockchain research, the hack “is almost certainly the largest theft ever known.”

The crypto markets initially responded to the hack with a strong response, but now experts believe there is a delayed reaction. Joseph Edwards is the head of research at Enigma Securities. He said that markets held up exceptionally well as a response to what had been expected to be an important destabilising event. When this happens, there’s usually a higher price to pay. (Cited By Reuters.)

Ethereum and Altcoins are soaring along with bitcoin

Bitcoin’s fall has reverberated across the crypto-market, as it usually does. Ethereum, the second-largest cryptocurrency, fell by 9.5 per cent to $2,386 (€2,200), marking its lowest price since October. Dogecoin and Cardano are among the major altcoins that have seen losses of up to 20 percent in the last week. CoinGecko data.

Crypto expert warns against ‘buying the dip’

Despite the ‘discounted prices’, some crypto analysts are urging caution before investing in the sharp dips. Geoff Kendrick from Standard Chartered Bank, the head of its crypto research department, cautioned against overconfidence. He said: “While Bitcoin trades relatively well in the digital asset space, it has been caught up by the Solana coin-driven selloff, and now, the broader risk-off nature of the markets.” He said: “I think that we will get a $1 Billion ETF outflow on the day before buying the dip becomes attractive.” (Cited By Forbes.)

Crypto sector is facing uncertain weeks, with continued volatility in the market and security concerns following the Bybit hack.

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