WEBDESK: The cryptocurrency market is facing a tough time, with Bitcoin and Ether price drop continuing as investors remain worried. Bitcoin, the biggest cryptocurrency, fell by 6%, dropping to $88,245 – its lowest price since November. This is also the first time Bitcoin has gone below $90,000 since January.
Ether, the second-largest cryptocurrency, had an even bigger fall, dropping 11% to $2,333, its lowest point since October.
Altcoins Also Hit Hard
It’s not just Bitcoin and Ether struggling. Other cryptocurrencies, like Solana and Dogecoin, also saw big losses. Solana dropped by 15%, while Dogecoin fell by 13%. Many investors are avoiding risk, leading to a general sell-off in the market.
“Crypto has been weak for weeks,” said Jeff Dorman, Chief Investment Officer at Arca. He explained that while stocks, gold, and bonds have held steady, crypto keeps falling due to bad market sentiment, memecoin scandals, and a lack of new investments.
Since December, most altcoins have lost between 30% and 80% of their value.
Solana Faces More Pressure
Solana, in particular, has struggled, losing around $50 billion in market value over the past month. A major controversy involving Argentina’s President Javier Milei and a failed memecoin called Libra added to the market panic.
To make things worse, a massive amount of Solana tokens ($1.72 billion worth) will be released into the market on March 1. This will likely increase selling pressure, making it harder for prices to recover.
Bybit Hack Still Affecting the Market
The Bitcoin and Ether price drop is also linked to a recent $1.5 billion hack of the Bybit exchange. Although Bybit has promised to refund the stolen funds, investors remain cautious. The exchange had to borrow and buy more Ether to cover the loss, causing further instability in the market.
Crypto Stocks Also Decline with Bitcoin and Ether price drop
The fall in crypto prices also affected related stocks:
- Coinbase dropped for the sixth day in a row.
- MicroStrategy fell by 5.7%, going negative for the year.
- Bitcoin mining company MARA Holdings dropped by 5.3% on Monday, following a 13% drop last week.
What’s Next for Crypto?
With weak investor confidence, upcoming token unlocks, and no strong positive news, the Bitcoin and Ether price drop could continue. Analysts believe the market may stay in decline until a new factor shifts investor sentiment.
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