The crypto market plummeted due to macroeconomic uncertainty, including reduced rate-cut expectations and U.S. policy concerns, alongside industry shocks like the $1.4B Bybit hack.

What caused the crypto market to plummet this time?

There are multiple factors behind the sharp drop in cryptocurrency prices:

US stocks and macroeconomics: The US stock market continues to be sluggish, and Chinese stocks have plummeted due to the impact of Trump's signing of an investment policy memorandum. At the same time, employment data has reduced expectations for multiple interest rate cuts in 2025, and the Federal Reserve is likely to keep interest rates unchanged in future meetings. The uncertainty of monetary policy has made investors more cautious about risky assets such as cryptocurrencies.

Internal impact of the industry: On February 21, the Bybit cryptocurrency exchange was hacked, losing more than $1.4 billion in ETH and related tokens, triggering market panic, and investors' selling exacerbated price declines.

Investor sentiment and capital flows: Digital asset investment products have seen capital outflows for two consecutive weeks, with Bitcoin outflows of $571 million, and institutional investors have reduced their investments. The inauguration of the US president brought uncertainty about trade tariffs, inflation and monetary policy, making investors cautious.

In addition, the cryptocurrency market faces huge overhead resistance, the market value is in adjustment, and the key support area has turned to pressure. Analysts say the market is in a neutral period and investors are cautious in making decisions.

Follow me and I will take you to learn more information and advice about the cryptocurrency world.