Recently, the currency circle has set off a "bloody storm". Following the largest theft in history, cryptocurrencies have plummeted again.
On Tuesday, the cryptocurrency market suffered a violent shock. The price of Bitcoin once fell 6% to $88,245, hitting the lowest level since November last year. It was also the first time that it fell below $90,000 since mid-January. As of now, Bitcoin and its price have fallen below $85,000, with a monthly decline of 15%.
At the same time, Ethereum once fell 11% to $2,333, the lowest level since October, and the trading price was far below the 200-day moving average. Solana has fallen more than 40% in the past month. Other cryptocurrencies have also fallen.
According to statistics, investors withdrew nearly $1 billion from Bitcoin exchange-traded funds on Tuesday, triggering a record outflow of funds. Since the US election, Bitcoin ETF buyers have lost a total of about $1.3 billion.
Cause Analysis
Analysis believes that this round of cryptocurrency market crash is not caused by a single factor, but by a combination of negative factors such as macroeconomic uncertainty, Memecoin chaos, Bybit theft and market confidence setbacks.
Macroeconomic uncertainty
First of all, Trump's policies and macroeconomic uncertainty, Bitcoin prices have fallen by nearly 20% since Trump took office. The Trump administration's protectionist trade policies and tough stance on global allies have exacerbated market uncertainty and investors' risk aversion has increased.
Adrian Przelozny, CEO of Independent Reserve, said that the decline in Bitcoin prices may be related to the various tariffs announced by President Trump, which have led to broader macroeconomic uncertainty and affected financial markets.
Bybit theft incident
Last week, the cryptocurrency exchange Bybit suffered the largest hacker attack in history, with Ethereum worth about $1.5 billion stolen. The attack has heightened market concerns about the security of digital asset platforms. Although Bybit CEO Ben Zhou said on X that he would fully compensate users for their losses, the incident has undoubtedly cast a shadow on the entire industry.
Memecoin chaos
Memecoin, launched by Trump and his wife Melania before taking office, has performed poorly. The Trump token has fallen by more than 80% since its peak after launch, which has also weakened the market's confidence in his support for cryptocurrency policies. Even more embarrassing is that the Argentine president followed up with a similar "national version of the token", which also plummeted.
Argentine President Javier Milei promoted a token called "LIBRA" on social media, claiming that the token is designed to help Argentine companies develop. However, the price of LIBRA experienced violent fluctuations in a short period of time, plummeting from its highs and shrinking its market value significantly. Milei subsequently deleted the relevant tweets and said he had nothing to do with the project.
Other phenomena
The selling pressure in the altcoin market also exacerbated the overall decline in the crypto market. Edward Chin, co-founder of Parataxis, pointed out that investors have been selling altcoins due to the continued unlocking of tokens and the supply entering the market. Messari's research shows that Solana will unlock about $1.72 billion worth of tokens on March 1, which further exacerbates the pressure on its price to fall.
*Disclaimer: The content of this article is for learning only, does not represent the official position of VSTAR, and cannot be used as investment advice.
