Bybit, one of the major cryptocurrency exchanges, has suffered a significant security breach, ranking among the largest in crypto history. Hackers managed to steal approximately $1.5 billion worth of Ethereum after executing a phishing attack targeting executives within the platform, leading to unauthorized transfers of digital assets.
Despite Bybit’s assurances regarding its financial stability and securing loans to compensate for the losses, this incident has raised widespread concerns about the security of digital assets. The event has further intensified bearish sentiment in the market, with investors becoming increasingly cautious about centralized exchanges and questioning their ability to withstand cyber threats and safeguard user funds.
Amid these developments, Bitcoin has experienced a sharp decline, dropping to $91,555, its lowest level in six weeks. This downturn is primarily attributed to growing concerns over U.S. trade policies, following President Donald Trump’s renewed commitment to imposing new tariffs on imports from Mexico and Canada, set to take effect on March 4. Despite ongoing diplomatic efforts to ease tensions by enhancing border security, the U.S. administration remains firm on its protectionist approach, heightening uncertainty in global financial markets.
Bitcoin was not the only cryptocurrency affected by the ongoing pressures. Altcoins also faced a sharp decline, with Ethereum dropping 8.7%, Solana plummeting 12.5%, and XRP losing 9.3%. Additionally, some meme-based tokens, such as $TRUMP, suffered even greater losses, plunging over 14% amid a broad market sell-off.
In the short term, market sentiment remains bearish, weighed down by political tensions, reduced risk appetite, and rising concerns over digital asset security. However, some long-term investors may view the sharp pullback as an opportunity, as Bitcoin continues to be regarded as a hedge against financial instability.
