Factors Behind Bitcoin’s Recent Price Decline: Market Instability and Hacks
Bitcoin’s price has plunged below $89,000, marking its lowest level since November and erasing nearly half a trillion dollars from the cryptocurrency market. Contributory factors include President Trump’s failure to implement key promises, a major hack on the Bybit platform, and overall market instability. Experts question bitcoin’s status as a digital gold amidst these challenges.
The cryptocurrency market is undergoing a significant downturn, with bitcoin’s price plummeting to its lowest point since November. This recent decline has resulted in the loss of nearly half a trillion dollars from the overall crypto market. Bitcoin dropped below $89,000 on Tuesday, just a month following its peak of over $108,000, which coincided with Donald Trump’s inauguration and his promise to support cryptocurrency as a “bitcoin president.”
The decline in bitcoin’s value can also be attributed to President Trump failing to implement key promises made since assuming office, despite his administration’s pro-crypto stance. According to Petr Kozyakov, co-founder and CEO of the crypto exchange Mercuryo, the community continues to anticipate significant measures, such as the proposed Bitcoin Strategic Reserve, which have yet to materialize.
Adding to the turmoil was a recent hack of the Bybit platform, which has been described as the largest digital theft in history, where hackers stole approximately $1.5 billion from an Ethereum wallet linked to the Dubai-based exchange. Since the breach, Ethereum’s value has decreased by over 15 percent, with other cryptocurrencies like Solana and XRP also experiencing substantial losses in market valuation.
Despite bitcoin being recognized as the most valuable cryptocurrency since its inception in 2009, industry experts caution that it has not yet earned the status of digital gold among investors. The recent market behavior indicates that bitcoin remains an asset associated with high risk, rather than being positioned as a central financial asset. Petr Kozyakov stated, “The cryptocurrency market is having a heliocentric reckoning as bitcoin slides below $89,000 amid a faltering US stock market.”
In summary, external factors such as presidential inaction, a major hack, and overall market conditions are contributing to the volatility of bitcoin’s price, leading experts to question its status as a safe-haven asset. The cryptocurrency market is in a phase of adjustment, highlighting its ongoing vulnerability to broader economic trends and investor sentiment.
In conclusion, bitcoin’s recent price crash can be attributed to a combination of President Trump’s unfulfilled promises, a significant hack affecting the Bybit platform, and broader market instability. The cryptocurrency, while still the leader in market value, struggles to secure a reputation as a reliable digital asset amidst these challenges. This situation reflects bitcoin’s ongoing volatility and the need for greater stability in the cryptocurrency market.
Original Source: www.independent.co.uk
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