Bitcoin Falls 6% to $88,245, its lowest since November. Ethereum Price Reduces 11% at $2,333, its lowest since October.
Bitcoin fell by the $90,000 mark for the first time in six weeks, shaking the cryptocurrency market. The world’s largest digital asset by market value fell as much as 6% to $88,245, its lowest since November.
A second largest cryptocurrency, Ethereum, also fell by 11% at $2,333, its lowest since October. The steep decline is part of a broader sell-off that is haunting both cryptocurrencies and conventional financial markets.
Investors have been withdrawing from riskier assets amidst escalating concerns over global economic uncertainty and regional tensions. The stock market, along with US tech stocks has also been in the red, with the Nasdaq Composite recording its third day of consecutive declines.
This increasing correlation between cryptos and mainstream finance has exposed digital assets to general economic circumstances. Though Bitcoin had been promoted as a hedge against volatility, its recent movement indicates that it is now traveling in tandem with conventional investments.
Most threatening to the crypto world, is that of an inherent security threat which recently stunned investors. A catastrophic hack of Dubai crypto exchange Bybit saw robbers making off with $1.5 billion in Ether from its digital ledger.
The hack has stirred up renewed concerns over the safety of online funds. In spite of the high claims of security by experts in the blockchain, hacks and cyberattacks remain a persistent problem.
The hack of Bybit has pointed to the riskiness of holding assets on centralised platforms, casting doubts on the ability of the industry to prevent significant thefts. Following the attack, a majority of investors withdrew from exchanges instantly, thereby inflicting increased market volatility.
Some wanted to withdraw their assets to self-custodied wallets, while others withdrew from the market entirely. The possibility of future security breach has contributed in part to the recent decline in cryptocurrency prices.
The recent downturn in the market coincides at the start of President Donald Trump’s presidency. When Trump was inaugurated in January 2025, a majority of crypto investors were optimistic that his policies would be more crypto-friendly. The market, however, has experienced unexpected setbacks.
READ ALSO: How People Are Using Grok 3 -The World’s Smartest AI
Since Trump’s presidency, Bitcoin fell over 13%, losing ground from $106,000 to $92,000. Experts blame the downtrend on a combination of geopolitical conflicts, slowing economies, and the Bybit hack.
Some analysts believe regulatory clarity could also be a factor. While Trump has been a vocal supporter of the cryptocurrency space in the past, his administration has yet to provide clear indication of how digital assets will be handled. Investors are staying on the side lines until policy action.
Now that Bitcoin is already under $90,000, the question on everyone’s mind is whether it will continue to decline. The market experts are of the opinion that Bitcoin might actually fall more, possibly to the range of $70,000-$80,000 as there is more selling pressure.
The old-time Bitcoiners are still optimistic. They believe that even if there is short-term price fluctuation, the general health of Bitcoin and other cryptocurrencies remains strong. Institutional investment, growing mainstream acceptance, and technological development in blockchain technology are seen as positive signs that can drive future growth.
It must be noted that Bitcoin has experienced some deep corrections in the past, and those have, in turn, recovered, to new all-time highs. As scary as this downtrend is presently, veteran investors are taking a long view, not a sign of sustained weakness, but a short-term temporary decline.
Possibly the most pronounced trend in recent years has been the increasing correlation between virtual currencies and conventional financial markets. In the past, Bitcoin was compared to “digital gold” and a haven asset in economic crises but recent price movement shows that Bitcoin and other virtual currencies are now behaving more like technology stocks.
READ ALSO: Nigeria’s GDP Grows by 3.84% in Q4 2024
As institutional investors become more active in the crypto market, the market becomes more determined by broad economic forces. Interest rate announcements, inflation, and global finance trends now determine the price of Bitcoin.
The shift has rendered the crypto market more linked to the world’s economy and less isolated from mainstream financial systems. There are some analysts who believe that consolidation is near, and prices will stabilize before the next major move.
In the near term, the majority of industry observers are bullish in the future of Bitcoin. They point to increasing adoption by large companies, technical advancements in the blockchain technology, and potential future regulation clarity as
For now, the concern is if Bitcoin can regain momentum or keep heading in the declining direction. While uncertainty still plagues the market, the next few weeks will dictate what the next stage of the crypto market will be like.
