Bitcoin Plummets to Three-Month Low Amid Global Trade Tensions and Exchange Security Breach
Bitcoin's Sharp Decline
Bitcoin fell to a three-month low at $87,279.0, driven by global trade tensions and a significant cryptocurrency exchange security breach. This drop reflects heightened risk aversion across global markets.
Global Trade Tensions Escalate
Renewed trade tensions, particularly Trump's planned tariffs on Mexico and Canada, have introduced uncertainty. Investors are moving away from risky assets, including cryptocurrencies, fearing economic instability and inflation.
Market Reaction and Risk Aversion
The Nasdaq 100 index dropped 1.5%, extending its decline, while the Japanese yen strengthened to 148.82 per USD. This risk-off sentiment mirrors last August's conditions, which led to a sharp Bitcoin decline.
Kraken Sees Traders Buying the Dip
Despite Bitcoin's drop, Kraken reported increased long positions. The perpetual long-short ratio reached a record high of 0.8, indicating traders anticipate a rebound, though shorts still outnumber longs.
Major Security Breach at Bybit
A $1.5 billion Ethereum theft from Bybit intensified concerns over digital asset security. This incident added downward pressure on Bitcoin's price and eroded market confidence.
Altcoins Suffer Significant Losses
Altcoins like Ether, XRP, Solana, and Cardano saw drops of over 10%, while meme tokens Dogecoin and $TRUMP also fell sharply, reflecting a broader risk-off mood in the crypto market.
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