Just like the stock market, the crypto market is currently facing a significant downturn. Due to U.S. tariffs, trade wars, and uncertainties in the American economy, investor sentiment remains weak. On Tuesday, Bitcoin dropped below $90,000 for the first time this year, prompting a massive sell-off among investors.
Crypto Market in Crisis
On Wednesday, U.S. President Donald Trump threatened to impose a 25% tariff on the European Union. As a result, both the equity and crypto markets experienced sharp declines. Over the past 24 hours, Bitcoin has fallen by 7%, wiping out approximately $230 billion from the crypto market.
The hardest-hit cryptocurrencies include Ethereum, Solana, XRP, and BNB, which recorded losses ranging from 5% to 12%. Due to this steep decline, massive sell-offs are occurring across the crypto market. According to CoinGlass data, 364,596 traders liquidated their assets in the last 24 hours, with total liquidations reaching $1.34 billion.
Trump’s Return to Power Affects Markets
Following Donald Trump’s return to power in the U.S., both the crypto and stock markets have felt significant pressure. Additionally, the U.S. Federal Reserve’s decision to maintain interest rates has added further strain on the market. As a result, American consumer sentiment has weakened, and fears of rising inflation could reduce consumer spending, potentially impacting the broader economy.
Crypto Hacking Concerns Worry Investors
Apart from economic uncertainties, a recent hacking incident at ByBit has further rattled the crypto market. The Dubai-based cryptocurrency exchange ByBit recently suffered a major security breach in which hackers stole 400,000 Ethereum, valued at approximately $1.5 billion (₹13,000 crore). On Wednesday, the U.S. Federal Bureau of Investigation (FBI) accused North Korea’s Lazarus Group of orchestrating the attack.
A Challenging Time for Crypto Investors
With multiple factors affecting the crypto market, including economic policies, geopolitical tensions, and cybersecurity threats, investors are facing increasing risks. The ongoing volatility and uncertainty suggest that the crypto market may continue to struggle in the near future.
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