Crypto Chaos: Bitcoin Falls Amidst Global Tariffs and Massive Ether Hack

Bitcoin plunged to its lowest since November due to fears over U.S. tariffs and a massive ether hack at Bybit. Market sentiment was already weak due to macroeconomic concerns and the failure of U.S. policy changes to boost investor confidence. Smaller altcoins also suffered significant losses.

Bitcoin experienced a substantial drop on Tuesday, falling below $90,000, a level not seen since November 18. This decline is attributed to mounting concerns over U.S. tariffs and the fallout from a catastrophic $1.5 billion ether hack from the Bybit exchange, shaking investor confidence.

Addition to the worries is President Donald Trump's impending decision to enforce a 25% tariff on imports from Canada and Mexico. This has resulted in a sharp rally in U.S. Treasury prices, highlighting global jitters about the U.S. economic landscape. Crypto analyst Marcel Heinrichsmeier attributes the decline primarily to macroeconomic factors.

The ripple effects of the Bybit hack and related market turmoil extend beyond bitcoin. Smaller altcoins like dogecoin, solana, and cardano have seen drops of around 20%. Meanwhile, the decline in risk appetite and lack of significant U.S. policy support for crypto further exacerbate the situation.

(With inputs from agencies.)