The cryptocurrency market has experienced a significant downturn recently, with $BTC price currently at $84,870, reflecting a 24% decrease from its January peak of $109,350. $ETH has also declined to $2,309.60, down 37% from its previous close. Several factors have contributed to this decline:
1. Major Security Breaches: A notable incident involves North Korean-linked hackers stealing $1.5 billion worth of Ethereum from the Dubai-based exchange Bybit. This event has raised concerns about the security of crypto assets and has led to increased regulatory scrutiny.
2. Policy and Economic Uncertainty: President Donald Trump's administration has introduced unexpected policies, including the imposition of a 25% tariff on imports from Canada and Mexico. These actions have created economic uncertainty, affecting investor confidence in various markets, including cryptocurrencies.
3. Meme Coin Volatility: The rise and subsequent crash of meme coins, such as the $TRUMP coin launched by President Trump, have contributed to market instability. These coins experienced initial surges followed by sharp declines, leading to significant losses for investors and a broader impact on the crypto market.
These events, among others, have collectively led to a loss of over $800 billion in the cryptocurrency market in recent weeks, deepening the current slump.
