The crypto market has suffered a severe downturn, with $325 billion in market capitalization wiped out since Friday. According to The Kobeissi Letter, a staggering $100 billion was lost within just one hour on Tuesday morning, despite no major headlines triggering the sell-off.
Bybit Hack Shakes Confidence
The recent crash was largely attributed to the hacking of the Bybit cryptocurrency exchange, where $1.4 billion worth of funds were stolen on Friday. This makes it the second-largest crypto hack in history, surpassing PolyNetwork’s infamous $611 million hack in August 2021. The breach sent shockwaves through the market, further eroding investor confidence.
Citadel Securities Eyes Crypto Liquidity Role
Adding to market uncertainty, Bloomberg reported that Ken Griffin’s Citadel Securities—worth $65 billion—is considering becoming a liquidity provider for Bitcoin and other cryptocurrencies. However, instead of boosting confidence, the news led to a “sell the news” reaction, with Bitcoin plunging below $90,000, hitting a low of $86,888.
Sam Bankman-Fried Resurfaces Amid Chaos
Amid the turmoil, former FTX CEO Sam Bankman-Fried made headlines by expressing “sympathy for government employees.” His remarks come as Dogecoin (DOGE) and Elon Musk brace for potential mass layoffs in the federal government.
With renewed volatility in equity markets, investors are retreating from risk assets like Bitcoin. This shift signals declining liquidity and mirrors patterns seen in previous crypto cycles. As confidence wavers, the market remains on edge, awaiting further developments.
