The Cryptocurrency Market Has Been Engulfed in "Blood and Storm," Following the Largest Theft in History

Recently, the cryptocurrency market has been engulfed in "blood and storm," following the largest theft in history, leading to another significant drop in cryptocurrency prices.

Recently, the cryptocurrency market has experienced a “blood and storm” following the largest theft in history, which has caused another round of significant drops in cryptocurrency prices.

On Tuesday, the cryptocurrency market experienced severe fluctuations. Bitcoin's price dropped by as much as 6% to $88,245, marking the lowest level since November last year and the first time it fell below $90,000 since mid-January.

At the same time, Ethereum plummeted by 11% to $2,333, reaching the lowest level since October, and other cryptocurrencies also saw declines.

According to analysts, the recent crash in the cryptocurrency market cannot be attributed to a single factor but rather a combination of multiple negative factors, including macroeconomic uncertainty, the chaos in the Memecoin market, and a decline in market confidence.

Firstly, Bitcoin's price has dropped nearly 20% since Trump was inaugurated. The Trump administration's trade protectionist policies and its tough stance towards global allies have led to increased market uncertainty, which in turn has caused investors to become more risk-averse.

Adrian Przelozny, CEO of Independent Reserve, stated that the drop in Bitcoin's price may be related to the various tariffs announced by President Trump, which have led to broader macroeconomic uncertainty affecting the financial markets.

Secondly, Bybit was hacked last week, resulting in the largest cryptocurrency theft in history, with approximately $1.5 billion worth of Ethereum being stolen. This attack has escalated concerns regarding the security of digital asset platforms.

Although Bybit CEO Ben Zhou stated on X that users would be fully compensated for their losses, this incident has undeniably cast a shadow over the entire industry.

In addition to the Bybit theft, the recent chaos in the Memecoin market has also undermined investor confidence. The Memecoin project Libra, which is associated with Argentine President Javier Milei, has seen its value plummet significantly, causing substantial losses for investors.

Moreover, the Memecoin launched by Trump and his wife Melania before his inauguration has performed poorly, with the Trump token dropping over 80% since reaching its peak after launch, further weakening market confidence in his support for cryptocurrency policies.

Finally, the selling pressure in the altcoin market has also intensified the overall decline in the cryptocurrency market. Edward Chin, co-founder of Parataxis, pointed out that due to ongoing token unlocks and supply entering the market, investors are rushing to sell altcoins.

According to research from Messari, Solana will unlock approximately $1.72 billion worth of tokens on March 1, which will further exacerbate the downward pressure on its price