Bitcoin and Crypto Markets Decline
Bitcoin and the wider cryptocurrency market suffered losses on Monday as investors responded to increased macroeconomic risks, a significant downturn in technology stocks, and a high-profile exchange hack. According to CoinGecko data, the world’s largest cryptocurrency fell by 5% to $91,000, its lowest point since February 3rd, while Ethereum saw an 11% drop, trading at $2,500.
This selloff occurred alongside a decrease in U.S. equities, especially within the technology sector. The Nasdaq Composite fell over 1%, impacted by concerns regarding artificial intelligence demand and upcoming earnings from chipmaker Nvidia. Furthermore, the S&P 500 experienced its third consecutive session of losses, reflecting the broader risk-averse sentiment in financial markets.
Macro Risks and Tariff Uncertainty
Adding to investor concerns, U.S. President Donald Trump confirmed the progression of planned tariffs on Canadian and Mexican imports, which revived worries about inflationary pressures and economic growth. On Monday, U.S. Treasury yields saw a slight decrease, suggesting some adjustment in inflation expectations. However, uncertainty surrounding monetary policy and geopolitical events kept investors cautious.
Beyond these macro factors, industry-specific risks also impacted the crypto markets. The recent hack of Bybit, which resulted in over $1.4 billion in ETH and stETH being drained from the exchange’s hot wallet on Friday, further dampened investor confidence. This security breach has increased worries about exchange vulnerabilities, particularly following the collapse of FTX in 2022.
Bybit Hack Exacerbates Market Concerns
This incident is one of the largest digital heists to date.
Leveraged positions also worsened the downturn. Coinglass data indicates that over $686 million in crypto-leveraged positions were liquidated in the past 24 hours. This forced selling amplified the market’s volatility, leading to more significant declines across major digital assets.
Solana Plummets
Among major cryptocurrencies, Solana (SOL) experienced the steepest decline, dropping 10% in the last 24 hours and a substantial 41% over the past month. This selloff followed concerns over token unlocks in March and a 30% increase in Solana’s inflation rate due to the recent implementation of SIMD-96, which adjusted the network’s fee structure. Trading at $140, SOL has now given up its post-election gains.
BRN analyst Valentin Fournier noted that Bitcoin’s performance amidst market instability underscores its resilience. “The delays in Bitcoin reserve adoption present a long-term opportunity—accumulation ahead of eventual acceptance.” The analyst also stated, “We maintain a bullish stance on crypto, recommending staying heavily invested. Solana, in particular, stands out as a high-upside play, with potential for outsized gains on the next rebound.”
