- Bitcoin dropped below 90k
- Bybit suffered a theft of approximately $1.5 billion
- Binance appears to be engaging in an unexpected and rapid sell-off of ETH
The latest downturn in the cryptocurrency market has affected many altcoins such as Ethena (ENA), Stacks (STX), Worldcoin (WLD), Artificial Superintelligence Alliance (FET), Immutable (IMX), Theta Network (THETA), JasmyCoin (JASMY), Arbitrum (ARB), and Pyth Network (PYTH).
There could be several reasons for this, but it could also be just a normal price action. However, there’s no denying that wider global events (in and out of crypto) have for sure played a part.
Bitcoin’s Weakness and Economic Worries
For instance, even Bitcoin went below 90k for the first time since November last year, so it’s expected that the lesser known crypto coins will suffer too.
Some experts believe that Bitcoin’s price fluctuations (as well as altcoins’) are likely influenced by current global economic uncertainties affecting most financial markets, largely stemming from Donald Trump’s announced tariffs.
Additionally, rising inflation and potential interest rate hikes have further dampened investor confidence, prompting a shift towards more stable investments.
Exchange Hack Adds to Unease
The happenings in the crypto industry, like the Bybit exchange hack, didn’t help either.
It was the biggest theft in crypto history, where a huge security breach resulted in the theft of approximately $1.5 billion in Ethereum last week. This event raised concerns about the security of crypto assets, leading to a broader market sell-off.
Possible Manipulation?
To make things worse, crypto commentators like Marty Party talked about market manipulation on X, that in order to recover its missing ETH, Bybit initiated market liquidations and will subsequently buy back the asset from retail investors at a reduced rate.
There are also reports of abrupt and highly aggressive disposal of ETH by Binance, which led to speculation that the company is aiming to provide Bybit with lower entry points for their buyback.
If true, this turn of events could be seen as a manipulation of the market. As such, this could be yet another reason for the market downturn and the price drop in altcoins.
Checking the Market’s Real Health
All in all, the crypto industry as a whole is not doing great at the moment, but that doesn’t have to mean trouble is brewing.
In fact, these events are a pretty normal occurrence. One could say it’s just a regular Wednesday.
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