Some believe that the increase in global risk-averse sentiment has led to the decline of assets like Bitcoin.
In terms of news, the Federal Reserve has once again made 'hawkish' statements.
Philadelphia Fed President Hawk said on Thursday that tariffs or trade wars could lead to inflation, and a decline in the labor force could also lead to inflation. However, since much depends on the actual policy details of the Trump administration, the Federal Reserve should keep interest rates unchanged for now.
Hawk said: "If there are no major changes in the inflation trend in the data to be released, I think it is appropriate to maintain the current level for a while and let some uncertainties resolve themselves."
The recent hacking incident at Bybit has intensified the volatility of cryptocurrencies like Bitcoin. Bybit, as a leading global cryptocurrency trading platform, has always been known for its security. Hackers exploited vulnerabilities in the platform and successfully stole over $1.5 billion (approximately 10.8 billion RMB) worth of more than 400,000 ETH and stETH, transferring them to unknown addresses.
Additionally, on February 24, lawmakers in South Dakota postponed a vote that could allow the state to invest in Bitcoin, effectively killing the bill.
Despite the recent negative news for Bitcoin, Standard Chartered's cryptocurrency analyst Jeffrey Kendrick remains optimistic about Bitcoin's price. Even though the recent sell-off has caused Bitcoin to drop to a three-month low, he still expects Bitcoin to reach $500,000 during President Trump's term.
Kendrick predicts that Bitcoin's price will reach $200,000 this year and then further climb to $500,000 in the coming years. He believes that as traditional financial institutions (such as Standard Chartered and others that have issued Bitcoin ETFs) become more involved in the cryptocurrency market, the industry will become more regulated and secure, and negative news (such as the $1.5 billion theft incident at Bybit exchange) will decrease.