Bitcoins
Bitcoin prices continued to fall from record highs to hover around £68,496 ($86,661) on 25th February as the crypto market witnessed massive liquidations after US President Donald Trump reaffirmed his plans to impose 25% US import tariffs on Canada and Mexico after a 30-day delay.
Bitcoin prices retreated over 11% in the past five days. Trump’s tariff plan will likely take effect next week, renewing volatility in global markets. Traders fear that fresh trade wars with multiple nations could translate to more stringent regulations, reduced liquidity, and heightened volatility in traditional and digital assets.
The S&P 500 index fell 2.94% in the past five days, failing to recover from last week’s sell-off. ‘Equities have faced a few difficult sessions over the last week, with top-performing stocks down many times the index, as markets grapple with increased uncertainty under the new administration,’ said Steven Lubka, head of private clients at Swan Bitcoin. ‘This pressure has spilled over into bitcoin and crypto markets.’
Lubka believes the lack of short-term catalysts and mounting selling pressures from equities typically create a profit-taking environment.
Bitcoins Bitcoin Continues To Be Dominated By Macro Trends
Bitcoin’s downfall triggered long liquidations, which amounted to over £485.3 million ($614 million) across centralised exchanges in the past 24 hours. Although the long-term catalysts for Bitcoin, led by Trump’s pro-crypto policies, could help the digital asset bounce back gradually, the crypto coin continues to be affected by macroeconomic trends.
‘The macroeconomic situation has been the main reason for the price decline in the last few hours,’ said Marcel Heinrichsmeier, crypto assets analyst at DZ Bank. ‘The continued tariff announcements and the general protectionist stance of the Trump administration once again led to uncertainty and a risk-off move, fuelling fears of a resurgence of trade wars and inflation.’
The Bitcoin crash has massively impacted smaller altcoins. Memecoin Dogecoin fell almost 20%. Furthermore, Solana and Cardano tokens have tanked by over 15% and 13% in the past week.
Bitcoins $1.5B ETH Hack on Bybit Exchange Adds To Shaky Market Sentiment
Dubai-based crypto exchange Bybit is at the centre of a financial storm after hackers stole almost £1.18 billion ($1.5 billion) worth of Ethereum (ETH) tokens from the platform’s cold wallet, creating panic among investors.
The hack was followed by over £3.16 billion ($4 billion) in withdrawals, bringing the total outflow to £4.34 billion ($5.5 billion). Blockchain research firm Elliptic said the hack ‘is almost certainly the single largest known theft of any kind in all time.’
Several blockchain experts blamed the North Korean hacking syndicate Lazarus Group, which has a history of targeting digital asset platforms.
Bybit pitched a £110.65 million ($140 million) bounty to track down the people behind the hack. ‘We want to officially reward our community who lent us their expertise, experience and support,’ said Bybit CEO Ben Zhou.
Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn’t indicate future returns.
Stephania Ramage Read More