The cryptocurrency market experienced a significant downturn today, with flagship digital assets Bitcoin and Ethereum both tumbling to multi-month lows. This sell-off comes amidst broader market turbulence and in the aftermath of a massive security breach at major cryptocurrency exchange Bybit.
 Bitcoin Breaks Key Support Level
Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, plummeted below the psychological threshold of $90,000 for the first time since mid-January. The digital asset fell as much as 6% during Tuesday’s trading session, reaching an intraday low of $88,245—levels not seen since November 2024.
This dramatic pullback marks a stark contrast to the bullish sentiment that dominated the crypto market in early 2025, when Bitcoin was testing the $100,000 mark that many analysts had long predicted would eventually be reached.
 Ethereum Hit Harder Amid Bybit Fallout
Ethereum (ETH), the second-largest cryptocurrency, suffered even steeper losses, dropping as much as 11% to $2,333—its lowest price point since October 2024. This sharper decline in ETH can be directly linked to last week’s catastrophic hack of cryptocurrency exchange Bybit, which saw approximately $1.5 billion worth of Ethereum stolen in one of the largest crypto heists in history.
 The Bybit Hack: A $1.5 Billion Crypto Heist
The Bybit security breach continues to send shockwaves through the cryptocurrency ecosystem. Last week’s attack, which specifically targeted Ethereum holdings, ranks among the most devastating exchange hacks ever witnessed in the industry.
Security experts are still investigating the exact methods used by the attackers, but preliminary reports suggest the breach may have exploited vulnerabilities in Bybit’s hot wallet infrastructure. The exchange has temporarily suspended all withdrawals and deposits while working with cybersecurity firms and law enforcement agencies to track the stolen funds.
 Cross-Market Contagion
Today’s cryptocurrency sell-off doesn’t exist in isolation. Global financial markets have experienced heightened volatility in recent days, with major stock indices also posting losses. This correlation between crypto assets and traditional markets continues a trend observed in recent years, as institutional investors have increasingly added digital assets to their portfolios.
The current sell-off demonstrates how cryptocurrency markets can experience amplified reactions when negative catalysts coincide with broader market uncertainty. The combination of the Bybit hack and general market unease has created a perfect storm for the crypto sector.
Market Sentiment and Technical Analysis
Market sentiment indicators have shifted dramatically bearish following these developments. The Crypto Fear & Greed Index, which measures overall market sentiment, has moved from “Greed” territory last week to “Extreme Fear” today, reflecting the rapid change in investor psychology.
From a technical analysis perspective, Bitcoin breaking below the $90,000 support level could potentially trigger further selling, with analysts now watching the $85,000 mark as the next critical support zone. Similarly, Ethereum faces significant downside risk if it fails to hold above the $2,200 level.
 Industry Reactions and Security Concerns
The Bybit hack has once again thrust cryptocurrency security into the spotlight, prompting other major exchanges to publicly reassure users about their security measures.
“This incident reinforces the critical importance of robust security infrastructure in our industry,” said a spokesperson from a competing exchange. “We’re seeing increased adoption of multi-signature wallets, cold storage solutions, and enhanced audit procedures across the sector.”
Regulatory bodies worldwide are also monitoring the situation closely, with some officials calling for stricter oversight of cryptocurrency exchanges to better protect investors from such incidents.
Looking Forward: Recovery Prospects
Despite the current market turmoil, some crypto industry veterans remain optimistic about the long-term outlook. They point to previous market cycles where significant pullbacks were followed by new all-time highs.
“The crypto market has demonstrated remarkable resilience throughout its history,” noted a prominent blockchain investor. “While the Bybit hack is certainly concerning, the fundamental value proposition of blockchain technology and decentralized finance remains unchanged.”
For investors navigating these turbulent waters, diversification and risk management strategies are more crucial than ever. As the market processes the impact of the Bybit hack and broader economic factors, volatility is expected to remain elevated in the coming weeks.
Whether this represents a temporary correction in an otherwise bullish cycle or the beginning of a more prolonged downturn remains to be seen. However, this event serves as a stark reminder of both the opportunities and risks inherent in the still-maturing cryptocurrency ecosystem. Check Cryptonewstoday for latest news updates.
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