Bitcoin prices plummeted below $90,000 in early trading Tuesday, wiping out nearly 16% of gains accumulated since former President Donald Trump championed pro-crypto policies. The cryptocurrency market faced dual pressures from weakening consumer confidence and high-profile security breaches, with altcoins and meme coins suffering steeper losses than Bitcoin itself.
Analysts attribute the sell-off to a perfect storm of market factors:
- Biggest monthly consumer confidence drop since 2022
- $1.5B Bybit exchange hack tied to North Korean operatives
- Ongoing corruption probe into Argentina’s LIBRA meme coin scandal
Eric Trump amplified crypto volatility on social media, urging investors to
“Buy the dips!!! BTC to $200K by 2025!”His endorsement comes as Trump-linked meme coins face scrutiny. The Melania Trump token has collapsed 93% since January, mirroring losses in other politically adjacent cryptocurrencies.
Despite regulatory shifts favoring crypto firms – including potential SEC settlements with Coinbase and Robinhood – the industry faces growing security concerns. Blockchain researchers confirm the Bybit heist used similar infiltration patterns to 2022’s $600M Axie Infinity breach, both allegedly orchestrated by North Korean cyber units.
Market observers note surprising resilience in Bitcoin’s long-term position. “This correction doesn’t negate the 214% rally since Trump’s election,” said crypto analyst Linda Peters. “But it exposes the market’s dependency on political narratives and unregulated financial experiments.”
As Solana (SOL) prices halve and meme coin volumes dry up, investors await clearer guidance from Washington. House Republicans promise crypto regulatory frameworks by July, while Democrats push for stricter exchange oversight following the Argentina scandal involving President Javier Milei.