What happened with the Bitcoin crash?

Recently, the cryptocurrency market has been engulfed in "blood and storm," following the largest theft in history, leading to another significant drop in cryptocurrency prices.

On Tuesday, the cryptocurrency market experienced severe fluctuations, with Bitcoin's price dropping by as much as 6% to $88,245, marking the lowest level since November last year and the first time it fell below $90,000 since mid-January.

At the same time, Ethereum plummeted by 11% to $2,333, the lowest level since October, and other cryptocurrencies also saw declines.

Analysts believe that the recent crash in the cryptocurrency market is not due to a single factor but rather a combination of multiple negative factors, including macroeconomic uncertainty, the chaos in the Memecoin market, and a decline in market confidence.

First is Trump's policies and macroeconomic uncertainty. Since Trump's inauguration, Bitcoin's price has dropped nearly 20%. The Trump administration's trade protectionist policies and its tough stance towards global allies have exacerbated market uncertainty, leading to increased risk aversion among investors.

Adrian Przelozny, CEO of Independent Reserve, stated that the drop in Bitcoin's price may be related to various tariffs announced by President Trump, which have led to broader macroeconomic uncertainty affecting financial markets.

Secondly, Bybit was hacked. Last week, the cryptocurrency exchange Bybit suffered the largest hacking incident in history, with approximately $1.5 billion worth of Ethereum stolen. This attack has heightened concerns about the security of digital asset platforms. Although Bybit CEO Ben Zhou stated on X that users would be fully compensated for their losses, this incident undoubtedly cast a shadow over the entire industry.

In addition to the Bybit theft, the recent chaos in the Memecoin market has also undermined investor confidence. The value of the Memecoin project Libra, associated with Argentine President Javier Milei, has plummeted significantly, causing substantial losses for investors.

Moreover, the Memecoin launched by Trump and his wife Melania before his inauguration has performed poorly, with the Trump token dropping over 80% since reaching its peak after launch, further weakening market confidence in his support for cryptocurrency policies.

In addition to the factors mentioned above, the selling pressure in the altcoin market has also intensified the overall decline in the cryptocurrency market. Edward Chin, co-founder of Parataxis, pointed out that due to ongoing token unlocks and supply entering the market, investors are rushing to sell altcoins. Research from Messari indicates that Solana will unlock approximately $1.72 billion worth of tokens on March 1, further exacerbating the downward pressure on its price