Bitcoin Slips Amid Fed Uncertainty and Bybit Hack Fallout
Bitcoin extended its losses on Monday, declining 0.8% to $95,610.2 by 01:22 ET (6:22 GMT), following a 1% drop last week. The downturn came as investors remained cautious about the U.S. interest rate outlook after weak economic data signaled slowing business activity.
The sell-off was further exacerbated by a massive security breach at cryptocurrency exchange Bybit, where hackers stole nearly $1.5 billion worth of Ethereum, adding to negative sentiment in the market.
Bybit Loses $1.5 Billion in One of Crypto’s Biggest Heists
Bybit suffered a major security breach during a routine transfer between its offline “cold” wallet and an online “hot” wallet, resulting in the theft of approximately 401,000 ETH. The incident ranks among the largest crypto heists to date.
Despite the massive loss, Bybit CEO Ben Zhou assured users that customer assets remain secure and that the exchange has sufficient reserves to cover the stolen funds. The company is working with blockchain forensic experts to track the stolen Ethereum and has offered a 10% bounty for information leading to its recovery.
In the wake of the breach, Bybit experienced a surge in withdrawal requests, processing over 350,000 transactions as users reacted to the security failure. Due to the high volume, the exchange acknowledged potential delays in withdrawal processing.
Preliminary investigations suggest that the infamous North Korean hacking group Lazarus may be responsible for the attack, according to media reports.
Investors on Edge Amid Federal Reserve Rate Uncertainty
Beyond security concerns, crypto investors remain wary of the Federal Reserve’s monetary policy trajectory. Recent U.S. economic data points to a slowdown, with the Services PMI slipping to 49.7 in February from 52.9 in January, signaling contraction in the sector.
Additionally, consumer sentiment has weakened. The University of Michigan’s Consumer Sentiment Index fell to a 15-month low of 64.7 in February, down from 71.7 the previous month, with concerns over tariffs further dampening confidence.
Despite these signs of economic deceleration, the Federal Reserve has maintained its hawkish stance, citing persistent core inflation, tariffs, and government spending cuts as key risks. This policy stance, combined with weakening economic indicators, has fueled volatility across financial markets, particularly in risk-sensitive assets like cryptocurrencies.
Altcoins See Steeper Declines Amid Risk-Off Sentiment
The broader crypto market mirrored Bitcoin’s slide, with altcoins suffering sharper losses as risk appetite faded.
- Ethereum (ETH) fell 2.7% to $2,718.28.
- XRP dropped 3.3% to $2.4796.
- Solana (SOL) tumbled 7.4%.
- Cardano (ADA) declined 4.4%.
- Polygon (MATIC) slid 2.4%.
Among meme coins, Dogecoin (DOGE) lost 5.3%, while $TRUMP dropped 7.2%.
As investors weigh ongoing macroeconomic uncertainty and fallout from the Bybit hack, the crypto market remains highly volatile, with traders closely monitoring regulatory developments and potential shifts in Fed policy.
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