Bitcoin prices fell below $84,000 on March 4, 2025, after a storm of activity in response to word that U.S. President Donald Trump would make a “Crypto Strategic Reserve” announcement. This is in the aftermath of shocking reports that the cryptocurrency market lost more than $1.5 billion in February, much of which was due to gigantic security break-ins.
Bitcoin Price Decline
Bitcoin had an approximate 10% loss, with a value price of approximately $83,900, after it showed a brief price jump following Trump’s statement. The audience believed that the phenomenon was a “buy the rumor, sell the news” phenomenon. The crypto market witnessed more than 10% drop within 24 hours, and Bitcoin’s market capitalization lost a lot. CoinMarketCap data showed Bitcoin around $83,098 on 4th March
The liquidation attracted around $980 million away from leveraged investors, and institutional demand for Bitcoin also declined. Bitcoin Spot Exchange Traded Funds (ETFs) experienced a $74.20 million outflow on March 3, further putting pressure on the market.
Increase in Crypto Losses
February 2025 was tainted by a record-breaking episode of cryptocurrency losses, which accounted for $1.53 billion. That is 18 times greater than last year. The hack on the Bybit exchange was accountable for $1.46 billion of such losses and was one of the main drivers behind the fall in the crypto market.
According to a report by Immunefi, the hacks accounted for 100% of losses in February, indicating the increasing exposure of CeFi platforms. DeFi protocols accounted for only 4.5% of the losses. The difference indicates the continued exposure offered by centralized crypto exchanges.
Key Incidents and Their Impact
The biggest hack was the Bybit hack, and it amazed the world to create a record of a surprise increase in losses. Besides that, stablecoin bank Infini was also hacked causing a loss of $49.5 million. Small breaches at institutions like zkLend and Ionic Money also caused total losses, and these were approximated as seven small breaches.
The most attacked chains in the report were BNB Chain and Ethereum, both of which were attacked four times. The two attacks accounted for about 72.8% of February’s total losses.
Although such vulnerabilities can only be addressed through the elimination of centralized exchanges, the inability to provide long-term security forces the industry to call for additional security features. The industry needs to find a way to overcome vulnerabilities in a bid to restore investor confidence and stabilize markets.
