The decline comes amid several influential factors, most notably:

• Global trade tensions: Concerns escalated after US President Donald Trump announced plans to impose 25% tariffs on imports from Canada and Mexico, raising investor concerns about the possibility of a global trade war.
• Cryptocurrency market turmoil: Bybit suffered a security breach that resulted in the theft of nearly $1.5 billion in ether, increasing uncertainty and confidence in trading platforms.
• Macroeconomic pressures: Concerns about inflation and monetary policies increased, especially as the Federal Reserve continues to adopt tight monetary policies, prompting investors to move away from high-risk assets such as cryptocurrencies.

In addition, other cryptocurrencies witnessed similar declines; ether fell by 5.85% to $2,347.19, and Ripple stabilized at $2.2081.