Why Did Bitcoin Crash to $78K? Here’s What’s Driving the Panic
Bitcoin soared to an all-time high of $109K in January 2025, but last night, it crashed to $78K, a brutal 26% drop, leaving it hovering around $80K. The market’s in full panic mode, and after digging into the latest news, here’s why: Trump tariffs, the Bybit hack, and a mix of other pressures are to blame.
1. Trump Tariffs: Trade War Chaos
The Trump administration’s new tariffs, 25% on Mexico and Canada, 10% on China, are shaking up global trade. Here’s the impact on Bitcoin:
Uncertainty Surge: Higher costs and trade disruptions spook investors.
Risk-Off Mood: People ditch volatile assets like Bitcoin for safer bets like bonds.
Sell-Off Trigger: The fear of an economic slowdown is hitting crypto hard.
These tariffs are a major reason for the market’s jitters.
2. Bybit Hack: $1.5B Gone
A massive hack hit Bybit’s Trust Wallet, with $1.5 billion in Ethereum stolen, the biggest crypto heist ever. Here’s why it’s tanking Bitcoin:
Trust Shattered: Security breaches like this make everyone nervous about crypto safety.
Panic Selling: Fear of more hacks or losses sparks a rush to sell.
This event is amplifying the crash big time.
3. Other Crash Fuel
Beyond tariffs and the hack, these factors are piling on:
Macro Fears: Uncertainty over Federal Reserve rate hikes is pushing investors away from risk.
Profit-Taking: After hitting $109K, big players cashed out, adding pressure.
Post-Halving Dip: Bitcoin often corrects after halvings (like 2024’s), and we might be feeling that now.
What’s Next for Bitcoin?
This crash sucks, no doubt, tariffs and a billion-dollar hack are a nasty combo. But Bitcoin’s bounced back from worse. The panic might ease once the news settles, though recovery could take a minute. Keep an eye on trade updates and crypto security news, they’ll drive what’s next.
Bitcoin soared to an all-time high of $109K in January 2025, but last night, it crashed to $78K, a brutal 26% drop, leaving it hovering around $80K. The market’s in full panic mode, and after digging into the latest news, here’s why: Trump tariffs, the Bybit hack, and a mix of other pressures are to blame.
1. Trump Tariffs: Trade War Chaos
The Trump administration’s new tariffs, 25% on Mexico and Canada, 10% on China, are shaking up global trade. Here’s the impact on Bitcoin:
Uncertainty Surge: Higher costs and trade disruptions spook investors.
Risk-Off Mood: People ditch volatile assets like Bitcoin for safer bets like bonds.
Sell-Off Trigger: The fear of an economic slowdown is hitting crypto hard.
These tariffs are a major reason for the market’s jitters.
2. Bybit Hack: $1.5B Gone
A massive hack hit Bybit’s Trust Wallet, with $1.5 billion in Ethereum stolen, the biggest crypto heist ever. Here’s why it’s tanking Bitcoin:
Trust Shattered: Security breaches like this make everyone nervous about crypto safety.
Panic Selling: Fear of more hacks or losses sparks a rush to sell.
This event is amplifying the crash big time.
3. Other Crash Fuel
Beyond tariffs and the hack, these factors are piling on:
Macro Fears: Uncertainty over Federal Reserve rate hikes is pushing investors away from risk.
Profit-Taking: After hitting $109K, big players cashed out, adding pressure.
Post-Halving Dip: Bitcoin often corrects after halvings (like 2024’s), and we might be feeling that now.
What’s Next for Bitcoin?
This crash sucks, no doubt, tariffs and a billion-dollar hack are a nasty combo. But Bitcoin’s bounced back from worse. The panic might ease once the news settles, though recovery could take a minute. Keep an eye on trade updates and crypto security news, they’ll drive what’s next.
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Join our channel:
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.