Why is the market crashing?

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.