Bitcoin has experienced a sharp price decline in recent days, losing almost 13% of its value amidst macroeconomic developments in the U.S. Let's explore the key factors contributing to this drop.
Bybit Hack and Trump's Tariffs
A primary factor causing Bitcoin's price drop was the $1.49 billion hack on the Bybit crypto exchange. After the incident was reported, BTC's price plummeted more than two grand. Additionally, President Trump's tariff announcements against Canada and Mexico further impacted the price.
U.S. Inflation Concerns
U.S. inflation concerns also influenced the market. Aurelie Barthere, research analyst at Nansen, noted that the market is reacting to the slowdown in U.S. economic growth, as confirmed by recent macroeconomic data.
ETF Outflows
Another contributing factor was the massive outflow from Bitcoin ETFs in the US. There have been six consecutive days of net outflows, making February the worst-performing month since their inception in January 2024.
A combination of factors including hacks, tariffs, and economic concerns has significantly pressured Bitcoin's price down below $90,000. Whether the cryptocurrency will recover in the coming days remains to be seen.
