Crypto market tumbles as bitcoin drops 6%, ether plunges 11% to lows
The cryptocurrency market tumbled on with Bitcoin and Ether hitting multi-month lows, as a broader cross-market sell-off and concerns over last week's $1.5 billion Bybit hack continued to weigh on investor sentiment.
Bitcoin and Ether slide to multi-month lows
Bitcoin, the world's largest cryptocurrency by market value, dropped as much as 6%, falling to $88,245, its lowest level since November and the first time it has slipped below $90,000 since mid-January.
Ether, the second-largest cryptocurrency, saw an even sharper decline, plunging as much as 11% to $2,333, marking its lowest price since October.
Altcoins struggle as weak sentiment and scandals mount
Alongside Bitcoin and Ether, major altcoins such as Solana and Dogecoin also faced heavy losses. Solana dropped 15%, while Dogecoin declined 13%, reflecting a broader risk-off sentiment in the digital asset market.
"Crypto is just weak and has been for eight weeks," said Jeff Dorman, Chief Investment Officer at Arca. "Equities, fixed income, and gold have shrugged off negative data, but only crypto keeps falling. Poor sentiment, memecoin scandals, and lack of capital for new token launches are driving this weakness."
Since mid-December, most altcoins have lost between 30% and 80% of their value, according to Arca.
Solana faces added pressure from token unlock
Solana has seen particularly steep losses, losing around $50 billion in market value over the past month. The decline was partially triggered by a controversy involving Argentina's President Javier Milei and a memecoin called Libra, which collapsed in value.
Adding to the selling pressure, $1.72 billion worth of SOL is set to be unlocked on March 1, according to research firm Messari.
"With continued token unlocks and increased supply, many investors are selling," said Edward Chin, co-founder of Parataxis Capital. "Most traders are already fully invested in altcoins, and any new capital is flowing into Bitcoin. This explains Bitcoin's relative strength and continued market dominance. Without a strong narrative in the altcoin sector, we could see further declines."
Bybit fack fallout still weighs on market
Ether remains under pressure even as Bybit pledged to fully replenish the estimated $1.5 billion lost to hackers. The Dubai-based exchange reportedly borrowed Ether and appears to have purchased additional tokens to cover the loss, according to a repost on X from Bybit CEO Ben Zhou.
Crypto stocks decline alongside market sell-off
The broader cryptocurrency downturn also hit crypto-related stocks.
Coinbase Global Inc. closed lower for the sixth consecutive day.
MicroStrategy fell 5.7%, turning negative for the year.
Bitcoin miner MARA Holdings Inc. declined 5.3% on Monday, after dropping 13% last week.
Market outlook remains uncertain
With ongoing market volatility, token unlocks, and weak investor sentiment, analysts suggest that altcoins may continue to bleed until a new catalyst emerges.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
a day ago
- Business Recorder
Crypto mining, other sectors: IMF rejects Pakistan's subsidised power tariffs proposal
ISLAMABAD: The International Monetary Fund (IMF) has rejected Pakistan's proposal to offer subsidised electricity tariffs to crypto mining and certain industrial sectors, warning that such moves would create new complications in the already strained power sector. Testifying before the Senate Standing Committee on Power, chaired by Senator Mohsin Aziz, Secretary Power Dr Fakhray Alam Irfan stated that all major power sector initiatives must be cleared by the IMF. He noted that although Pakistan has surplus electricity, particularly in winter months, the IMF is cautious about any pricing mechanisms that could distort the market. In September 2024, the Power Division proposed a six-month incremental consumption package (October–March) at marginal cost (Rs 23/kWh), based on last year's usage. However, after two months of discussion, the IMF only approved a three-month version, citing potential market distortions. The curious case of Bitcoin mining in Pakistan In a subsequent plan shared in November 2024, the Power Division suggested a targeted marginal cost-based package (Rs 22–23/kWh) for energy-intensive industries such as copper and aluminium melting, data centers, and crypto mining, arguing it would boost consumption of surplus electricity and reduce capacity charges. Still, the IMF rejected the proposal, stating it resembled sector-specific tax holidays that have historically created imbalances. 'As of now, the IMF has not agreed,' Dr Irfan confirmed, adding that the plan is also under review by the World Bank and other development partners. He emphasised that the government has not withdrawn the proposal and remains engaged with international institutions to refine it. During the session, a heated debate also emerged on the government's recent agreement with scheduled banks to reduce the circular debt stock of Rs 1.275 trillion. Senator Shibli Faraz criticised the deal, stating that banks were 'forced at gunpoint' to offer the loans. 'If I were a banker, I would have refused,' he said, warning that the burden would fall on consumers through future levies. Secretary Power rebutted this claim, clarifying that no new levies have been imposed. He stated that the existing Debt Servicing Surcharge (DSS) of Rs 3.23/kWh will continue for the next five to six years to recover the amount. He also highlighted that circular debt inflows have been reduced through timely subsidy injections. On consumer facilitation, Dr Irfan reported that over 500,000 people have downloaded the 'Apna Meter Apni Reading' app, allowing users to upload photos of their meter readings to potentially reduce inflated billing. He said the app will soon be extended to K-Electric (KE) users. The committee also expressed displeasure over the absence of the Federal Minister for Power, who was expected to answer questions on Independent Power Producers (IPPs) and sectoral inefficiencies. Senator Mohsin Aziz said the establishment of certain IPPs was an injustice and questioned why excess profits have not been recovered. Senator Shibli Faraz alleged that inflated project costs were used to justify higher returns, adding that no real steps have been taken to curb the circular debt crisis. 'The public is bearing the burden of government inefficiencies,' he said. Senators raised concerns about forced load shedding, especially in areas like Tharparkar, Matiari, and Umerkot, where daily outages last up to 14 hours, despite consumers paying their bills. Senator Poojo Bheel accused local officials of corruption, claiming they take bribes for illegal connections and restore disconnected supplies for a 'fee'. He emphasised that even paying customers are facing denial of their rights due to systemic failure. In response, Dr Irfan explained that revenue-based load shedding occurs in areas with losses exceeding 20%, citing a tragic case where a SEPCO employee was fatally stabbed during a disconnection drive. KE's Chief Distribution Officer Sadia Dada said that out of 2,100 feeders, about 30% face load shedding due to high electricity theft, often through Kundas (illegal hooks) in informal settlements. She said consumer bills are now offered in instalments to ease payment difficulties. Dr Irfan stated that 58% of consumers fall under the 'protected' category, paying Rs 10 per unit. With the approval of international partners, the government will allocate Rs 250 billion in subsidies, while also rolling out more tech-based solutions for theft control. So far, 500,000 people have downloaded the meter reading app, with 250,000 registered users. Senator Haji Hidayatullah raised an over-billing case involving a Rs 2.3 million charge on a property in Peshawar that had already been cleared by PESCO. He claimed PESCO officials offered to settle the bill for Rs 300,000, calling it blatant corruption. The Secretary Power assured that the matter will be investigated. The CEO of HAZECO also briefed the committee on issues in Sub-Division Lora Chowk, including estimated billing, feeder faults, and pending ELR work under release numbers 46241, 51911, and 51910. Following extensive deliberations, the committee expressed displeasure at the Power Division's repeated deflection of questions and directed the department to submit comprehensive answers at the next meeting. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business Recorder
Crypto mining, other sectors: IMF rejects subsidised power tariffs proposal
ISLAMABAD: The International Monetary Fund (IMF) has rejected Pakistan's proposal to offer subsidised electricity tariffs to crypto mining and certain industrial sectors, warning that such moves would create new complications in the already strained power sector. Testifying before the Senate Standing Committee on Power, chaired by Senator Mohsin Aziz, Secretary Power Dr Fakhray Alam Irfan stated that all major power sector initiatives must be cleared by the IMF. He noted that although Pakistan has surplus electricity, particularly in winter months, the IMF is cautious about any pricing mechanisms that could distort the market. In September 2024, the Power Division proposed a six-month incremental consumption package (October–March) at marginal cost (Rs 23/kWh), based on last year's usage. However, after two months of discussion, the IMF only approved a three-month version, citing potential market distortions. The curious case of Bitcoin mining in Pakistan In a subsequent plan shared in November 2024, the Power Division suggested a targeted marginal cost-based package (Rs 22–23/kWh) for energy-intensive industries such as copper and aluminium melting, data centers, and crypto mining, arguing it would boost consumption of surplus electricity and reduce capacity charges. Still, the IMF rejected the proposal, stating it resembled sector-specific tax holidays that have historically created imbalances. 'As of now, the IMF has not agreed,' Dr Irfan confirmed, adding that the plan is also under review by the World Bank and other development partners. He emphasised that the government has not withdrawn the proposal and remains engaged with international institutions to refine it. During the session, a heated debate also emerged on the government's recent agreement with scheduled banks to reduce the circular debt stock of Rs 1.275 trillion. Senator Shibli Faraz criticised the deal, stating that banks were 'forced at gunpoint' to offer the loans. 'If I were a banker, I would have refused,' he said, warning that the burden would fall on consumers through future levies. Secretary Power rebutted this claim, clarifying that no new levies have been imposed. He stated that the existing Debt Servicing Surcharge (DSS) of Rs 3.23/kWh will continue for the next five to six years to recover the amount. He also highlighted that circular debt inflows have been reduced through timely subsidy injections. On consumer facilitation, Dr Irfan reported that over 500,000 people have downloaded the 'Apna Meter Apni Reading' app, allowing users to upload photos of their meter readings to potentially reduce inflated billing. He said the app will soon be extended to K-Electric (KE) users. The committee also expressed displeasure over the absence of the Federal Minister for Power, who was expected to answer questions on Independent Power Producers (IPPs) and sectoral inefficiencies. Senator Mohsin Aziz said the establishment of certain IPPs was an injustice and questioned why excess profits have not been recovered. Senator Shibli Faraz alleged that inflated project costs were used to justify higher returns, adding that no real steps have been taken to curb the circular debt crisis. 'The public is bearing the burden of government inefficiencies,' he said. Senators raised concerns about forced load shedding, especially in areas like Tharparkar, Matiari, and Umerkot, where daily outages last up to 14 hours, despite consumers paying their bills. Senator Poojo Bheel accused local officials of corruption, claiming they take bribes for illegal connections and restore disconnected supplies for a 'fee'. He emphasised that even paying customers are facing denial of their rights due to systemic failure. In response, Dr Irfan explained that revenue-based load shedding occurs in areas with losses exceeding 20%, citing a tragic case where a SEPCO employee was fatally stabbed during a disconnection drive. KE's Chief Distribution Officer Sadia Dada said that out of 2,100 feeders, about 30% face load shedding due to high electricity theft, often through Kundas (illegal hooks) in informal settlements. She said consumer bills are now offered in instalments to ease payment difficulties. Dr Irfan stated that 58% of consumers fall under the 'protected' category, paying Rs 10 per unit. With the approval of international partners, the government will allocate Rs 250 billion in subsidies, while also rolling out more tech-based solutions for theft control. So far, 500,000 people have downloaded the meter reading app, with 250,000 registered users. Senator Haji Hidayatullah raised an over-billing case involving a Rs 2.3 million charge on a property in Peshawar that had already been cleared by PESCO. He claimed PESCO officials offered to settle the bill for Rs 300,000, calling it blatant corruption. The Secretary Power assured that the matter will be investigated. The CEO of HAZECO also briefed the committee on issues in Sub-Division Lora Chowk, including estimated billing, feeder faults, and pending ELR work under release numbers 46241, 51911, and 51910. Following extensive deliberations, the committee expressed displeasure at the Power Division's repeated deflection of questions and directed the department to submit comprehensive answers at the next meeting. Copyright Business Recorder, 2025
Business Recorder
23-06-2025
- Business Recorder
US investor strikes $1 billion merger to create bitcoin treasury company
BOSTON: US investor and entrepreneur Anthony Pompliano announced on Monday the creation of a new bitcoin treasury company that would hold up to $1 billion of the world's largest cryptocurrency on its balance sheet. Pompliano said in a statement that his financial services firm ProCap BTC would merge with Columbus Circle Capital I, a special purpose acquisition company, to create ProCap Financial, a bitcoin treasury firm. Several public companies have employed bitcoin treasury strategies, which involves allocating a portion of their cash and reserves toward bitcoin, to replicate the success of software company Strategy, which began accumulating bitcoin in 2020 and now holds more than $63 billion worth of the digital token. The trend comes as US President Donald Trump has sought to overhaul cryptocurrency policy, including calls to establish a strategic bitcoin reserve, after courting cash from the industry on the campaign trail. Pompliano, one of the biggest investors in the crypto space over the last several years, said ProCap BTC has raised $500 million in equity and $250 million in a convertible note, in what he termed the largest initial fundraising in history for a bitcoin treasury company. Pakistan allocates 2,000 MW to Bitcoin mining, AI data centers in bold digital economy push Unlike traditional bitcoin treasury companies, Pompliano said ProCap Financial would use its bitcoin balance sheet to generate revenue and profit through a variety of strategies, including lending, derivatives, and other products and services. He also said leading institutional investors Citadel, Susquehanna, Jane Street, and Magnetar have committed capital, as have crypto firms Off the Chain Capital, Pantera, Coinfund, Parafi, and FalconX. Reuters was unable to verify whether these companies were investing in ProCap Financial. 'The legacy financial system is being disrupted by bitcoin right before our eyes,' Pompliano said. 'Our objective is to develop a platform that will not only acquire bitcoin for our balance sheet, but will also implement risk-mitigated solutions to generate sustainable revenue and profits from our bitcoin holdings.'
