Bitcoin investors are facing uncertainty due to the cryptocurrency's price drop and the recent Bybit exchange hack. Let's explore the current market situation.
Bitcoin Price Decline
Bitcoin has fallen nearly 20% from its all-time high since Donald Trump took office in January. His confrontational approach towards geopolitical allies and rivals exacerbates the situation, making investors nervous. Bitcoin options data suggests investors are hedging against a potential drop to $70,000.
Impact of Bybit Hack
The cryptocurrency sector suffered a major setback following the Bybit exchange hack, resulting in record losses. "The Bybit exchange hack has added additional downward pressure on the price and weighed on sentiment," said Chris Newhouse, research director at Cumberland Labs.
Market's Reaction to Macroeconomic Factors
Inflation expectations and tariff policies are adding further pressure, causing some investors to exit cryptocurrencies to avoid risk. "The crypto market is still searching for a new catalyst to reverse the downtrend," said Ravi Doshi, co-head of markets at crypto brokerage FalconX.
Amid macroeconomic instability and uncertainty factors in the crypto market, investors continue to exercise caution in making decisions about their assets.
