Crypto markets across the world experienced an increased sell-off over the last 24 hours, resulting in a market capitalization as of November 2021. Reports suggest the Bybit Hack and Memecoin bust have paved the way to this three-year low fall.
According to reports from popular crypto market capitalization sources, the overall crypto market capitalization plummeted to $2.86 trillion on Tuesday, which is an 8% decline, making the value near the levels seen in November 2021. The entire crypto market experienced a steep sell-off amid the Bybit hack and meme coin bust, resulting in a decline in Bitcoin price, the coin is currently selling at $86,700, showing an 8% price shrink, and other coins like XRP, Ether, and Solana were also got affected.
Cryptocurrencies are highly volatile, their price is affected by market trends, security changes, and hype of new coins. The current market steep highlights the impact of macroeconomic shifts in the crypto ecosystem, suggesting that the impact is similar to traditional assets.
Richard Teng, Binance CEO, expressed his view on current market movements revealing that it is another short-term tactical retreat that is out of a structural decline. He also added that the price movements don’t reveal what is happening behind the scenes, and at the end of the day, the growth of crypto remains firmly intact.
Evaluating the market data, a strong link between Bitcoin and the entire crypto market is revealed, which means the declined demand for Bitcoin has negatively affected other coins as well, resulting in an overall market breakdown.
In November 2021, the Bitcoin market dominance was nearly 41%, but it has surged since then, reaching around 61%. Though the Bitcoin trade went well, it is now affected by the Solana meme coin-driven selloff and the increased risk-off nature of markets.
Memecoin Bust And Bybit Hack Affect The Crypto Market
The increased scams revolving around the crypto market and the involvement of newly launched meme coins like Libra, Melania, and Lazarus groups which led to the ETH stealing have created a bubble around the crypto market, with many questioning the security of their assets.
The recent sell-off was associated with a breach, stealing more than $1.5 billion ETH and ETH-based tokens from Bybit, one of the leading crypto exchanges. Lazarus, North Korea’s state-backed hacking organization is behind this largest ever-breach. The scam has resulted in massive withdrawal of assets from the exchange, which the team faced difficulty in meeting.
A few days before this, the launch of a meme coin, Libra, by the Argentine President, Javier Milei created another level of suspicion among investors. The coin price soared and then quickly drew down to 95% of its bloated $4.5 billion valuation. Many questioned the involvement of Javier in this following the leak of text messages from Hayden Davis, the founder of the project, in which he hinted at his association with Javier’s inner government. However, both denied this later.
These scams created a huge loss for investors and lessened their interest in crypto, which negatively affected the entire crypto market. However, many analysts believe that the institutional adoption of Bitcoin and a rebirth in DeFi can change the present scenario and a more massive capitalization in the future.
