Bitcoin fell below $90,000 on Tuesday, hitting its lowest level since November 18, as investor confidence took a hit from last week’s $1.5 billion hack of ether from the Bybit exchange and growing concerns over U.S. tariffs.
The world’s largest cryptocurrency dropped 7.25% on the day to $87,169.76, extending a broader decline in the digital asset market. Smaller altcoins saw even steeper losses, with dogecoin, solana, and cardano each falling around 20%, according to CoinGecko.
Market sentiment has been shaken by signs that U.S. economic dominance may be fading, coupled with President Donald Trump’s plan to impose a 25% tariff on imports from Canada and Mexico starting in March. In response, investors have turned to safer assets, driving U.S. Treasury prices higher and pushing yields to two-month lows.
“The macroeconomic situation has been the main reason for the price decline in the last few hours,” said Marcel Heinrichsmeier, crypto assets analyst at DZ Bank. “The Bybit hack and recent turmoil in memecoins have contributed to an overall weaker mood in the crypto market compared to earlier this year.”
Investor expectations for crypto-friendly policies in the U.S. have also waned. Optimism had surged late last year when the Trump administration hinted at support for a strategic bitcoin fund and regulatory easing. However, beyond appointing a few crypto-friendly officials, concrete policy changes have yet to materialize.
Meanwhile, capital outflows from bitcoin-backed exchange-traded funds have accelerated. LSEG data shows the largest ETFs are on track for a net monthly outflow of $644 million, the highest since their launch in January 2024.
