Crypto stocks tumbled on Tuesday as investors reacted to weak U.S. economic data and concerns over a billion-dollar hack targeting a major digital asset exchange.
Economic Data and Impact on the Crypto Market
Stocks of trading platforms like Robinhood and Coinbase dropped 8% and 6.4%, respectively. Bitcoin treasury firm Strategy plunged over 11%, while bitcoin miners Marathon Digital Holdings and Bitdeer saw declines of 9% and 29%. The downturn reflected a broader investor pullback from cryptocurrencies and other high-risk assets amid fears of a global trade war, rising inflation, and macroeconomic instability.
Market Reaction to the Cyberattack
Market turbulence intensified last week when Bybit, ranked as the 14th-largest crypto exchange by daily trading volume, was hacked, resulting in the theft of $1.4 billion in Ethereum and related tokens. This breach, the largest crypto attack to date, contributed to Bitcoin’s drop below $90,000 for the first time in three months.
Outcomes and Implications for Cryptocurrencies
Bitcoin was recently trading below $89,000, marking a 7% decline over the past week, according to crypto data provider CoinGecko. The leading cryptocurrency has dropped roughly 17% since reaching its all-time high above $108,000. Other cryptocurrencies experienced sharp declines but have since regained some ground. Persistent U.S. inflation, with the consumer price index rising for the fourth consecutive month in January, and President Donald Trump’s tariff policies continue to fuel market fears.
The decline in crypto stocks highlights ongoing volatility in the market amid economic uncertainties and significant cyberattacks. Investors should brace themselves for potential further shifts in this dynamic industry.
