Fed Warning and Bybit Hack Shake Crypto Market as $230 Billion Vanishes

Serious Fed Warning Sparks Bitcoin Price Crash Fear

According to Forbes, the cryptocurrency market is facing significant turbulence following a major hack of the Dubai-based Bybit exchange. This incident has raised concerns about potential bitcoin price suppression. The bitcoin price briefly plummeted on Friday but managed to recover as U.S. Senator Cynthia Lummis hinted at upcoming legislation that could impact the market. Meanwhile, economists are warning of a "nightmare" scenario for the Federal Reserve, which could further affect bitcoin prices.

Forbes also highlighted a Bank of America survey indicating that expectations of stagflation in the U.S. economy have reached a seven-month high. This economic uncertainty, coupled with the Federal Reserve's cautious approach to interest rate changes, has left investors in a "wait-and-see" mode. Market analysts suggest that a major bitcoin price crash is unlikely in the short term unless there is a significant macroeconomic or regulatory shift.

Source: Forbes, "Serious Fed Warning Sparks Bitcoin Price Crash Fear" (https://www.forbes.com/sites/digital-assets/2025/02/24/serious-fed-warning-sparks-bitcoin-price-crash-fear/)

XRP and Bitcoin Fall Amid Struggles to Recover

Barron's reports that cryptocurrencies, including XRP and Bitcoin, are struggling to regain momentum after recent market declines. The report notes that the broader crypto market has been affected by macroeconomic uncertainties and regulatory challenges. Despite these struggles, the market remains hopeful for favorable regulatory developments, particularly in the U.S.

While the article does not provide specific price details, it emphasizes the ongoing challenges faced by major cryptocurrencies in recovering from recent downturns. Investors are closely monitoring market trends and potential policy changes that could influence the sector's trajectory.

Source: Barron's, "XRP and Bitcoin Fall. Why Cryptos Are Struggling to Recover." (https://www.barrons.com/articles/xrp-bitcoin-crypto-hack-ethereum-1a42f144)

Crypto Market Loses $230 Billion Amid Tariff Concerns

FXStreet reports that the cryptocurrency market has shed $230 billion in value following U.S. President Donald Trump's announcement of tariffs on Mexico and Canada. Bitcoin's price dropped below $92,000, while Solana experienced a 15% decline, falling below $150. The tariffs, which include a 25% levy on goods from Mexico and Canada, have created uncertainty in global trade, prompting investors to de-risk their portfolios.

The report also highlights that Bitcoin investment products saw significant outflows last week, with $571 million withdrawn from exchange-traded funds. Analysts attribute this to the combined impact of the tariffs and macroeconomic data expectations. The market's bearish sentiment has been further exacerbated by the recent Bybit hack and its connection to the Lazarus Group.

Source: FXStreet, "Crypto market shaves off $230 billion as Trump's tariff on Mexico, Canada weighs on Bitcoin and altcoins" (https://www.fxstreet.com/cryptocurrencies/news/crypto-market-shaves-off-230-billion-as-trumps-tariff-on-mexico-canada-weighs-on-bitcoin-and-altcoins-202502250125)

Bitcoin Struggles Below $96,000 as Altcoins Decline

The Economic Times reports that Bitcoin is struggling to maintain its position below $96,000, with other major cryptocurrencies like Ethereum and Solana experiencing declines of up to 6%. XRP, BNB, and Dogecoin also saw notable losses, reflecting a broader bearish trend in the market. The report attributes these declines to ongoing market volatility and external economic pressures.

Despite the challenges, the article notes that Bitcoin's long-term bullish structure remains intact. However, the current market sentiment suggests a potential for further consolidation if uncertainties persist. Investors are advised to monitor market developments closely as the situation evolves.

Source: The Economic Times, "Crypto Price Today: Bitcoin struggles below $96,000; Ethereum, Solana drop up to 6%" (https://m.economictimes.com/markets/cryptocurrency/crypto-price-today-bitcoin-struggles-below-96000-ethereum-solana-drop-up-to-6/articleshow/118527234.cms)

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