The cryptocurrency market is in consolidation again, with total market capitalization currently down by 1.55% to $3.19 trillion.

The bearish sentiment is attributed to several factors that have played out over the last few days.

Global Economic Uncertainty Weighs on Crypto

Notably, crypto stakeholders consider global economic uncertainties and security risks in the crypto sector as triggers for negative trends.

Added to this is the threat of a new virus that could cause a global pandemic. Lucie, SHIB Marketing Lead, shared her insights on the current bearish crypto market in an update on X.

According to Lucie, the $927 billion loss the U.S. stock market suffered has severely impacted the crypto sector.

She suggested that the massive loss has sparked panic among investors as many remain uncertain of the economic recovery pathway.

The reason for the substantial loss is still being analyzed, but investors are sure the global financial market might experience some rough times.

In the crypto market, the news caused a major shockwave across the ecosystem. Bitcoin and Ethereum declined by approximately 4.7% and 6%, respectively.

Bybit Hack Triggers Fear and Market Volatility

In addition to the wiping out of $927 billion in the broader financial market, the crypto sector had its share of woes.

Malicious actors attacked the Bybit exchange and drained about $1.5 billion in what has been described as one of the largest crypto thefts in history.

Santiment, an on-chain market intelligence platform, noted that the attack had triggered extreme Fear, Uncertainty, and Doubt (FUD) in the market.

It was observed that the crypto community is reacting negatively, as evidenced by the drop in Bitcoin’s price.

Santiment compared the market reaction to the bearish sentiment between February 17 and 18, just before Bitcoin rebounded.

However, Santiment provided a positive outlook. It emphasized that while a major hack such as the Bybit attack could have a lasting impact, markets have been known to move against general sentiments.

That is, if traders are highly bearish, it might prompt a reversal in the market.

Lucie aligns with this view, noting that crypto assets have recovered quickly despite the decline witnessed after the Bybit hack.

She suggested that this indicates the market’s resilience and growing investor confidence.

Lucie considers this development bullish for crypto as assets are showing strength amid major risks.

The SHIB Marketing Lead believes the crypto sector might be building momentum to rebound to new levels.

As of this writing, Bitcoin’s price changed hands at $96,614 after dropping to a low of $94,852.96.

Ethereum has also gained 1.56% to trade at $2,778.06, with investors actively trading the token.

Current trading volume has risen slightly by 6.79% at $24.82 billion.

Pandemic Fears Add to Crypto Market Jitters

According to Lucie, the third factor impacting the crypto market is discovering a new virus that can cause a pandemic similar to COVID-19.

Although Lucie did not name this virus, she might be referring to recent global reports that have raised concerns in the health sector.

Lucie believes these concerns have impacted crypto’s growth as investors are beginning to worry over possible economic disruptions and market volatility.

As previously highlighted by Lucie, analysts believe the crypto industry is highly resilient and can recover.

Time will reveal how fast market dynamics could change and if a rebound to previous levels might occur.

The post Here Are Top 3 Factors Impacting Crypto Market Right Now appeared first on The Coin Republic.