Crypto markets remain bearish after Bybit breach

Bitcoin price continued to decline on Thursday, dropping below $85,000. If BTC price declines, support can be found at $82,000, while resistance may be encountered at $99,300. 

Ethereum price also dipped on Thursday, dropping below $2,300. If Ethereum price declines, it may encounter support near $2,200, while if it increases, it may encounter resistance near $2,860.

Bitcoin price registered a new all-time high of $109,880 in January but has since been under pressure by increased risk aversion sentiment. Bitcoin price fell hard this week, losing more than 22% of its value from its 2025 peak.

Confidence in the crypto industry was shaken this week, after Bybit, a major crypto exchange, was hacked and $ 1.5 billion was stolen. Most major cryptocurrencies have turned bearish this week, with Bitcoin price dropping to its lowest point since November. 

Most major cryptocurrencies are under pressure on concerns that US President Donald Trump’s trade policies may start global trading wars. Trump has been using threats of imposing trade tariffs as a negotiation tool to further his agenda with other countries. The uncertainty over Trump’s future policies and trade tariffs is generating a risk aversion sentiment, putting pressure on crypto markets. 

Trump has threatened that he will announce reciprocal tariffs on many countries, which would raise US import taxes to match those imposed by the country’s other trading partners. If Trump goes through with these heavy tariffs, global inflation is likely to rise and the economic outlook will worsen, putting pressure on crypto markets.  

Renewed anxiety over US trading tariffs on Tuesday triggered a broader stock market sell-off. Tech stocks in particular were hit hard, intensifying the negative sentiment that prevailed in crypto markets. 

Trump’s proposed plans for building a Bitcoin strategic reserve have boosted Bitcoin price. The US government is expected to adopt a pro-crypto regulatory and fiscal policy. Trump’s administration, however, has so far failed to implement any pro-crypto policies, putting pressure on crypto markets.

Cryptocurrency prices are also affected by central banks’ interest rates. High interest rates stifle economic growth, putting pressure on crypto markets. The US Federal Reserve held interest rates steady at its January meeting, after delivering three consecutive rate cuts in 2024. FOMC policymakers voted unanimously to maintain the federal funds range to a target range of 4.25% to 4.50%.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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