- Bitcoin plunged to $91,555.2, hitting a six-week low as trade tensions and security concerns rattled investors.
- Bitcoin decline was fueled by Trump’s tariff threats and a massive Bybit exchange hack, shaking market confidence.
Bitcoin’s price plunged to $91,555.2 on Tuesday, marking a six-week low. The drop came after renewed global trade tensions and a major security breach at a leading cryptocurrency exchange.
The decline reflects a broader market sell-off as investors react to growing economic uncertainty.
Trump’s Tariff Threats Shake Investor Confidence
U.S. President Donald Trump reaffirmed his plans to impose tariffs on imports from Mexico and Canada, effective March 4. Despite ongoing negotiations, the administration remains firm on tightening trade policies.
This decision has sparked fears of economic instability, prompting investors to move away from riskier assets like cryptocurrencies. Analysts warn that tariffs could lead to inflation and weaker economic growth, further dampening market sentiment.
Bybit Security Breach Adds to Market Woes
Dubai-based crypto exchange Bybit suffered a massive security breach, with hackers stealing around $1.5 billion worth of Ethereum.
The attack was a sophisticated phishing scheme that tricked Bybit executives into authorizing unauthorized transfers. Despite securing loans to cover the losses and implementing new security measures, the incident has raised concerns over the safety of digital assets.
This breach has deepened investors’ skepticism, contributing to Bitcoin’s continued decline.
Altcoins Follow Bitcoin’s Decline
The broader crypto market mirrored Bitcoin downturn, with major altcoins experiencing sharp losses:
- Ethereum (ETH) fell 8.7% to $2,493.15.
- XRP dropped 9.3% to $2.261.
- Solana (SOL) plunged 12.5%.
- Cardano (ADA) fell 8.8%.
- Polygon (MATIC) declined 8.1%.
Meme tokens also suffered, with Dogecoin (DOGE) sliding 9.3% and $TRUMP losing 14%.
What’s Next for Crypto?
With global trade tensions rising and security concerns resurfacing, the crypto market remains volatile. Investors are closely watching policy developments and regulatory actions that could impact future price movements.
