Bitcoin’s price has dropped below $90,000 for the first time since November 2024, largely due to uncertainty caused by U.S. tariffs and a recent $1.5 billion hack of the Bybit exchange. Other cryptocurrencies, including Ethereum and various altcoins, have also faced significant declines. Analysts advise caution for investors amidst ongoing market volatility.

Bitcoin’s value has plummeted, falling below $90,000 for the first time since November 2024, with reports highlighting its drop to $89,314 following a significant decline of up to 7.5%. This downturn is attributed to increasing market anxiety surrounding U.S. trade tariffs imposed by President Donald Trump and the aftermath of a major hack at the Bybit exchange.

President Trump’s decision to implement a 25 percent tariff on imports from Canada and Mexico has heightened concerns regarding inflation and potential trade conflicts. Investors are opting for safer assets, leading to a marked increase in U.S. Treasury bond purchases. Marcel Heinrichsmeier, an analyst at DZ Bank, noted how these tariff actions contribute to a climate of fear regarding trade wars and inflation.

The recent $1.5 billion hack of Bybit, a leading crypto exchange, has exacerbated the situation. The breach involved the theft of funds from an Ethereum wallet, marking it as one of the largest thefts on record, according to Elliptic. Following the hack, although crypto markets initially showed resilience, experts believe the true impact is now being felt.

Ethereum has also seen a significant decline, dropping 9.5% to reach $2,386, the lowest since October. Other altcoins such as Dogecoin, Solana, and Cardano have experienced declines of approximately 20% over the past week. The broader crypto market is reacting negatively, mirroring Bitcoin’s losses.

Amid these market fluctuations, some analysts advise caution regarding investments in the current dip. Geoff Kendrick from Standard Chartered Bank expressed concerns over premature market optimism, suggesting that the market might face a substantial outflow before stabilizing. He stated, “Before buying the dip is attractive I think we get a $1 billion ETF outflow day.”

In conclusion, the recent sharp decline in Bitcoin’s price below $90,000 highlights the growing concerns regarding inflation and trade tensions linked to U.S. tariffs and security issues following the Bybit hack. Market sentiment has been shaken, resulting in significant drops not only for Bitcoin but also for other major cryptocurrencies. Analysts recommend caution for investors considering entering the market during this period of volatility, as challenges persist in the cryptocurrency sector.

Original Source: euroweeklynews.com

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