Bitcoin’s value has plummeted below $90,000, its lowest level since November, due to concerns over the recent hack of cryptocurrency exchange Bybit.
The hack, which resulted in the theft of $1.5 billion worth of ether, has shaken investor confidence in the crypto market. Bitcoin’s price dropped by as much as 7.5% on Tuesday, marking its largest daily decline since August.
The decline was also fueled by investor outflows from bitcoin-backed exchange-traded funds (ETFs). Data shows that the largest ETFs are on track for a net monthly withdrawal of approximately $644 million, the highest since their launch in January 2024.
The hack has had a ripple effect on the broader crypto market, with ether, the second-largest cryptocurrency, sliding 9.5% to $2,386, its lowest level since October. Smaller cryptocurrencies have also suffered significant declines, with dogecoin, Solana, and Cardano each falling by around 20%.
Bybit, the hacked exchange, has confirmed that the stolen funds were taken from a “cold wallet”, an offline digital wallet designed to be more secure. Blockchain analytics firm Elliptic described the attack as more than double the previous largest crypto heist.
The hack has raised concerns about the security of cryptocurrency exchanges and the potential for further attacks. Investors are also worried about the lack of regulation in the crypto market, which makes it vulnerable to hacks and other malicious activities.
Despite the recent decline, some analysts believe that the crypto market will recover in the long term. However, the short-term outlook remains uncertain, and investors are advised to exercise caution.
