Bitcoin took a sharp hit on Tuesday, falling 4.6% to $91,555, marking its lowest level in six weeks. The drop came as renewed trade tensions and a major crypto exchange security breach spooked investors, leading to a broad sell-off across digital assets.
Trump’s tariff plans shake crypto markets
U.S. President Donald Trump reaffirmed his commitment to imposing tariffs on Mexico and Canada, set to take effect on March 4. While the move aims to address border security concerns, it has escalated market uncertainty, sending investors fleeing from riskier assets like Bitcoin. Analysts warn that these tariffs could fuel inflation and slow economic growth, making traders more cautious about holding volatile assets.
Bybit security breach adds to market jitters
On top of the trade concerns, Bybit, a major crypto exchange, suffered a $1.5 billion security breach after a phishing attack tricked executives into authorizing transfers to hackers. While the exchange reassured users that funds are secure and emergency measures are in place, the incident deepened fears over crypto security, adding further downward pressure on Bitcoin’s price.
What’s next for bitcoin?
With global uncertainties mounting, Bitcoin’s next moves will likely depend on how markets digest Trump’s trade policies and how quickly Bybit restores confidence. While some still see BTC as a hedge against instability, the short-term outlook remains volatile as traders reassess risk.
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