Bitcoin Price Crashes Below $90,000 in a Month Amid Hacking Fallout

Impact of Bybit Breach and Meme Coin Scandal

The flagship cryptocurrency, Bitcoin, has plummeted below the $90,000 mark for the first time in over a month, hitting a low of approximately $89,000—its weakest level since November 18, 2024. This sharp decline in Bitcoin price follows a series of troubling events in the cryptocurrency market, including a massive hack at the Bybit exchange and a controversial meme coin scandal tied to Argentina’s President Javier Milei. According to Bloomberg, as of 7:25 AM London time on February 25, 2025, Bitcoin’s value reflects a broader sell-off across the crypto landscape, driven by shaken investor confidence and market uncertainty. The downturn marks a stark contrast to the bullish sentiment that propelled Bitcoin’s value upward after Donald Trump’s U.S. presidential election win in November 2024, highlighting the volatility that continues to define the digital asset space.

The catalyst for this Bitcoin price drop appears multifaceted, with the Bybit hacking incident standing out as a pivotal blow. On February 21, 2025, Bybit—one of the world’s largest cryptocurrency exchanges by trading volume—reported a staggering $1.5 billion loss in digital assets due to a sophisticated cyberattack. This breach, targeting an offline Ethereum wallet, is now considered the largest cryptocurrency theft in history, surpassing previous records like the 2021 Poly Network exploit. Bybit’s CEO, Ben Zhou, took to X to reassure users that while the hacked wallet was compromised, other assets remained secure. However, the fallout was immediate and severe, triggering a reported $4 billion “bank run” as panicked users rushed to withdraw funds. Industry experts speculate that the notorious North Korean hacking group Lazarus may be behind the attack, a theory supported by crypto forensics firms like Elliptic. This Bybit hacking incident has not only rattled individual investors but also reignited fears of systemic vulnerabilities in cryptocurrency exchanges, contributing significantly to the Bitcoin price crash below $90,000.

Compounding the market’s woes is a separate but equally damaging episode involving Argentina’s President Javier Milei, dubbed “Argentina’s Donald Trump” for his populist flair. Milei recently endorsed a meme coin called $LIBRA, touting it as a tool to bolster small businesses and startups in his country. Initially, the coin’s value soared past $4 billion, fueled by hype and Milei’s high-profile backing. Yet, within hours, $LIBRA collapsed, wiping out an estimated $251 million in investor funds and leaving 86% of traders in the red. This meme coin scandal has sparked outrage, with calls for Milei’s impeachment and investigations into potential corruption. The fiasco has drawn parallels to past cryptocurrency scams, further eroding trust in speculative digital assets. Analysts, including Caroline Moron of OrbitMarket, note that the combination of the Bybit breach and Milei’s meme coin controversy evokes painful memories of previous crypto market downturns, amplifying the negative sentiment driving Bitcoin’s price below $90,000.

This latest Bitcoin price decline underscores a shift from the risk-on enthusiasm that followed Trump’s election victory, when Bitcoin surged to new heights. While the cryptocurrency enjoyed a strong rally in late 2024, peaking above $100,000 in some instances, 2025 has ushered in a more cautious tone. The Bybit hacking fallout and the $LIBRA meme coin crash have collectively dented the market’s momentum, with investors now grappling with heightened uncertainty. Crypto market analysts suggest that the $89,000 level could act as a critical support zone, but a sustained recovery may hinge on restoring faith in exchange security and regulatory clarity around speculative tokens. The interplay of these events—Bybit’s unprecedented loss and Milei’s political entanglement—has thrust Bitcoin into a precarious position, reminding stakeholders of the inherent risks in the decentralized finance ecosystem.

For those tracking Bitcoin price trends in 2025, this episode serves as a sobering reminder of the market’s susceptibility to external shocks. The Bybit incident, with its massive financial toll, underscores the urgent need for robust cybersecurity measures in cryptocurrency exchanges, while the Milei meme coin saga highlights the perils of celebrity-driven hype in unregulated markets. Together, these developments have pushed Bitcoin below the $90,000 threshold, a psychological and technical level closely watched by traders. As the dust settles, the cryptocurrency community is left to assess the long-term implications—whether this dip signals a fleeting correction or a deeper unraveling of the bullish narrative that defined late 2024. For now, the Bitcoin price crash below $90,000 stands as a testament to the fragile balance between innovation and instability in the ever-evolving world of digital currencies.