Bitcoin tumbled below the $90,000 mark on Tuesday, reaching its lowest level since November, as a $1.5 billion hack on Bybit and renewed fears over U.S. tariffs rattled investor confidence.
The world’s largest cryptocurrency dropped as much as 7.5% on the day, trading at $87,169.76. The decline came amid a broader selloff in digital assets, with Ether, the second-largest cryptocurrency by market value, falling 8.46% to $2,414.29—its lowest since October.
Hacks and Tariff Uncertainty Shake Crypto Markets
The sharp downturn follows last week’s cyberattack on Bybit, the world’s second-largest cryptocurrency exchange, which resulted in the theft of digital assets worth approximately $1.5 billion. Blockchain analytics firm Elliptic called it “almost certainly the single largest known theft of any kind in history.”
Adding to the market’s woes, investors are growing increasingly concerned about U.S. economic policies. Former President Donald Trump reaffirmed on Monday his plans to impose a 25% tariff on imports from Canada and Mexico, set to take effect in early March. The uncertainty has driven investors toward traditional safe-haven assets, with U.S. Treasury yields plunging to two-month lows.
“The macroeconomic situation has been the main driver behind Bitcoin’s price decline in the last few hours,” said Marcel Heinrichsmeier, a crypto analyst at DZ Bank. “The Bybit hack and the memecoin turmoil of the past few weeks have further weakened sentiment in the crypto market.”
Altcoins Face Deeper Losses
While Bitcoin has lost nearly 8% over the past week, smaller cryptocurrencies have suffered even steeper declines. Memecoin Dogecoin, along with tokens from the Solana and Cardano networks, have all plunged by around 20%, according to CoinGecko data.
“The ongoing sell-off in crypto isn’t surprising given that we’ve just witnessed the biggest hack in history,” said Charles Wayn, co-founder of blockchain-based platform Galxe. “This has been compounded by additional fears over global tariffs.”
Delayed Market Reaction to Bybit Breach
Although the Bybit hack was disclosed last week, analysts suggest Tuesday’s price drop reflects a delayed market response.
“Markets initially held up surprisingly well despite the severity of the breach,” said Joseph Edwards, head of research at Enigma Securities. “But we’re now seeing the classic scenario where a slight contraction in risk appetite triggers a cascading sell-off in crypto.”
Bybit CEO Ben Zhou confirmed that the stolen funds were taken from a cold wallet—an offline storage system designed for enhanced security. The breach, which primarily impacted Ether tokens, has shaken confidence in crypto security measures, prompting some investors to exit the market.
