(qlmbusinessnews.com . Wed 26th Feb, 2025) London, UK —
Bitcoin Plummets Amid Trump Jitters and Record Bybit Hack
Bitcoin has taken a battering this Tuesday, plunging in value as broader market anxieties intensify. The cryptocurrency's slide comes amid growing unease over US economic policy and a massive security breach at the Bybit exchange.
The drop represents a dramatic reversal of fortune, especially following a period where Bitcoin and other digital assets benefitted from former President Trump's championing of the crypto market. However, analysts are now suggesting the market has lost patience regarding Trump's commitment to a “Bitcoin Strategic Reserve.”
The decline accelerated this morning as tariff concerns and other economic headwinds dragged down stock markets across the globe.
Adding fuel to the fire, the Bybit exchange suffered a cyberattack last week, in what’s being dubbed the “biggest heist in digital history.” Hackers made off with a staggering $1.2 billion (£950 million approx.) in Ether, the cryptocurrency underpinning the Ethereum network. While Bybit's CEO, Ben Zhou, assured users the platform remains solvent and client assets are fully backed, the incident has sparked a fresh wave of concern over the security vulnerabilities inherent in the crypto space.
Kathleen Brooks, research director at trading firm XTB, notes that wider financial market volatility is likely contributing to the crypto sell-off. “The current environment of rising volatility is not conducive to cryptocurrency gains,” she observed.
Despite the price crash, trading activity has surged, with a 105% increase to $210 billion as investors react to the dramatic market movements.
Bitcoin briefly dipped below $87,000, sparking fears of further losses. Agne Linge, Head of Growth at crypto platform WeFi, warned that negative sentiment could persist in the coming weeks. However, she remains optimistic about the long-term outlook, citing ongoing institutional adoption as a positive fundamental.
Arthur Azizov, CEO at payments app B2BINPAY, cautioned that a failure to hold above $89,233 could trigger further declines, while a rebound could signal renewed upward momentum.
“The market is experiencing one of the biggest negative resets this year,” Agne Linge added.
Looking at the bigger picture, Bitcoin's recent decline has seen approximately $20,000 wiped from its value since its peak in late January. Despite this drop, it remains significantly higher than its 2023 lows and has increased by more than 60% since September.
Ethereum, the second-largest cryptocurrency, is experiencing even greater pain, down nearly 11% in the last 24 hours, largely attributable to the Bybit hack.
Whether this downturn marks the beginning of a bear market remains to be seen, with analysts offering divergent forecasts for the months ahead.
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