Bitcoin tumbled below $90,000 on Tuesday, hitting $87,169 — its lowest since November 18 — as U.S. tariff concerns and last week’s $1.5 billion Bybit hack shook investor confidence. The world’s largest cryptocurrency fell 7.25% in a day, while ether dropped 8.46% to $2,414, its weakest since October.
Market jitters intensified after President Donald Trump confirmed plans for a 25% tariff on imports from Canada and Mexico starting in March. This, combined with a rally in U.S. Treasury prices, signaled growing economic uncertainty.
Crypto analyst Marcel Heinrichsmeier of DZ Bank pointed to macroeconomic factors driving the price dip, while the Bybit hack and recent memecoin sell-offs have further dampened market sentiment.
Bybit, the Dubai-based exchange and second-largest globally after Binance, reported a massive cyberattack last week, with blockchain research firm Elliptic calling it the largest known theft in history.
Joseph Edwards, head of research at Enigma Securities, noted the sell-off seemed like a delayed reaction to the hack. “Markets initially held up but are now seeing a cascading effect,” he said.
Altcoins have fared worse, with dogecoin, solana, and cardano tokens each plummeting around 20%, according to CoinGecko.
Adding to the bearish mood, hopes for pro-crypto policies under Trump have fizzled. Optimism about a strategic bitcoin fund and regulatory relief has faded, with little concrete action following early appointments of crypto-friendly officials.
Bitcoin ETFs have also seen a sharp pullback, with net monthly outflows of $644 million — the largest since their debut in January 2024, according to LSEG data.
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