Bitcoin Falls to 6-Week Low Amid Renewed Global Trade Tensions and Bybit Hack

This was reported by UNN with reference to Investing. As of 08:54 Kyiv time, bitcoin fell by 4.6% to $91,633, updating its lowest level since January 13 at $91,625.

Bitcoin fell to a six-week low on Tuesday amid renewed global trade tensions and problems at a major cryptocurrency exchange, undermining investor confidence and triggering a large-scale sell-off, Investing reported.

As of 08:54 Kyiv time, bitcoin fell by 4.6% to $91,633, updating its lowest level since January 13 at $91,625.

The sharp drop was caused by Trump's reaffirmation of his intention to impose tariffs on imports from Mexico and Canada on March 4.

Despite ongoing negotiations and efforts by both neighboring countries to tighten border controls and combat fentanyl trafficking, the US administration remains adamant.

This situation creates additional uncertainty in global markets, including in the cryptocurrency sector. Investors fear that trade duties could undermine economic relations between countries, forcing them to abandon risky assets such as cryptocurrencies.

Analysts predict that the imposition of tariffs could trigger an increase in inflation and a slowdown in economic growth, factors that traditionally undermine investor confidence in volatile markets, including cryptocurrency.

Although some see bitcoin as a hedge against economic instability, the current situation shows a cautious approach by investors amid high uncertainty.

In addition, the situation escalated after a large-scale hack of the Bybit crypto exchange located in Dubai. As a result of the attack, hackers stole Ethereum to the tune of $1.5 billion. This is one of the largest incidents in the history of digital currencies.

The cybercriminals used a sophisticated phishing scheme to force Bybit's management to approve transfers to unauthorized wallets, resulting in significant losses. The exchange assured its users of its solvency by allocating credits to cover losses and strengthening security measures.

However, even these actions could not fully calm the market, as the incident only increased concerns about the security of digital assets, putting additional pressure on bitcoin.

On Tuesday, the cryptocurrency market showed a general decline. Investors were getting rid of speculative assets, which led to a decline in prices not only for bitcoin but also for altcoins.

Ethereum lost 8.7%, falling to $2,493.15. XRP fell by 9.3% to $2,261. Solana fell by 12.5%, Cardano - by 8.8%, and Polygon - by 8.1%.

Among the meme tokens, Dogecoin dropped by 9.3%, and $TRUMP - by 14%.

Recall, rapper and designer Kanye West, also known as Ye, has announced the launch of his own cryptocurrency token YZY.