Bitcoin (BTC) and Ethereum (ETH) Slump as Bybit Hack and Trump's Tariff Threat Weigh on the Market

Leading cryptocurrencies corrected sharply on Monday as the Bybit hack and President Donald Trump's tariff threat weighed on the market.

Major cryptocurrencies corrected sharply on Monday as concerns about a Bybit hack and President Donald Trump’s tariff threat weighed on the market.

Bitcoin fell below $91,000 for the first time in over three months, while Ethereum hit an intraday low of $2,461.52, its lowest since Feb. 3.

The apex cryptocurrency has already lost 9.7% since February began, compared to a 43% gain last year. Ethereum has dropped 23.63% and could be headed for its worst February.

Ethereum was at the center of a $1.4 billion hack on cryptocurrency exchange Bybit. While the platform claimed to have restored its ETH holdings to pre-hack levels, there were concerns about the hackers dumping such a large amount.

The market bled heavily, with over $960 million getting liquidated in the last 24 hours. Upside bets accounted for $890 million.

Short positions increased as the total number of short positions exceeded that of long positions, as per the Long/Short Ratio.

However, a massive $1.61 billion in short positions faced liquidation if Bitcoin reclaimed $100,000.

The market was gripped with "Extreme Fear," according to the Crypto Fear and Greed Index, sparking concerns of further downside.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $3.08 trillion, down 2.56% in the last 24 hours.

Investors will be watching the all-important earnings report of artificial intelligence darling Nvidia Corp. (NASDAQ:NVDA) on Wednesday.

Also, the Federal Reserve’s preferred inflation gauge, the personal consumption expenditures index, is due out on Friday, offering cues on the central bank’s moves on interest rates.

Major stock indexes slipped on Thursday. The S&P 500 fell 0.50% to close at 5,983.25. The tech-focused Nasdaq Composite lost 1.21% during the session, ending at 19,286.92. The Dow Jones Industrial Average chalked out a narrow gain of 0.08% to close at 43,461.21.

The sentiment was impacted after Trump reaffirmed that tariffs on imports from Canada and Mexico would take effect as planned.

Investors will focus on the all-important earnings report of artificial intelligence darling Nvidia Corp. (NASDAQ:NVDA) on Wednesday.

See More: Best Cryptocurrency Scanners

Analyst Notes: Popular cryptocurrency analyst and investor Ali Martinez warned traders that if Bitcoin loses $93,700 as support, the next key level of interest is $75,600.

If #Bitcoin $BTC fails to hold $93,700 as support, the next key level to watch is $75,600! pic.twitter.com/bCfwEHhlYJ

He also highlighted the declining capital inflows into the cryptocurrency market in the last 10 days, which fell from $52 billion to $26.5 billion.

Capital inflows into the crypto market have dropped nearly 50% in the past 10 days, declining from $52 billion to $26.5 billion. pic.twitter.com/m9DWHiyQPn

Chris Burniske, cofounder of cryptocurrency firm Placeholder, said the ongoing "mid-bull reset" is not surprising and that top coins like Bitcoin, Ethereum, and Solana (NYSE:SOL) saw bigger corrections during the last bull cycle in 2021.

"Those calling for a full-blown bear are misguided," Burniske added.

In the middle of 2021:$BTC drew down 56%$ETH drew down 61%$SOL drew down 67%Many others 70-80%+You can come up with all the reasons for why this cycle is different, but the mid-bull reset we're going through isn't unprecedented. Those calling for a full blown bear are…

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