Cyberattack on Bybit

Hacker attack: Bitcoin plunges below 90,000 dollars

Stock market participants pointed to a hacker attack on the crypto exchange Bybit as the reason for the falling Bitcoin prices.(Bild: Drago (computergeneriert))

Bitcoin, the most important digital currency, suffered from the general weakness of the cryptocurrency market on Tuesday. The price of one unit fell below 90,000 US dollars on the Bitstamp trading platform for the first time since mid-January. At times, Bitcoin slipped to its lowest level since mid-November last year. It was last quoted at around 89,700 dollars (85,706 euros).

Stock market participants pointed to a hacker attack on the crypto exchange Bybit as a negative factor. This triggered a sell-off on the entire crypto market, from which Bitcoin is now also suffering. However, Ethereum, the second most important cryptocurrency in terms of market capitalization, came under particular pressure. Other assets such as XRP, Solana and Dogecoin also suffered sharp price declines.

Series of events
"The Bybit hack was the latest in a series of events that brought back bad memories for crypto market participants," said Caroline Mauron, co-founder of Orbit Markets, a provider of liquidity for crypto derivatives.

The expert also referred to the scandal surrounding the Argentinian cryptocurrency $LIBRA. The Argentinian public prosecutor's office had launched an investigation into the ultra-liberal President Javier Milei and a number of entrepreneurs. The head of state is accused of promoting the cryptocurrency on social media, the value of which plummeted just hours later.

Bitcoin was on the Trump upswing
Until mid-January, Bitcoin had benefited significantly from the prospect of a regulation-friendly environment for Bitcoin following the inauguration of US President Donald Trump. As a result, the cryptocurrency reached a record high of just under 109,400 dollars.

Market analyst Timo Emden from Emden Research summarized: "For investors, Donald Trump remains both a curse and a blessing." On the one hand, investors are banking on a crypto-friendly market environment and the introduction of strategic Bitcoin reserves in the US. On the other hand, according to Emden, Trump's protectionist policies are detrimental to risk appetite. As crypto assets are a high-risk and interest-free asset class, they are generally abandoned in uncertain times.