It’s always hard to pinpoint an exact cause of a dramatic sell-off, but in this case, there seem to be a number of factors at work.
The latest centralized exchange hack may be among the most devastating to date as Bitmart has lost $196 million in various cryptocurrencies. A tweet from security analysis firm Peckshield first called attention to the alleged hack Saturday night. The hacker has been systematically using decentralized exchange aggregator 1inch to swap the stolen assets for the cryptocurrency ether (ETH), and using a secondary address to deposit the ETH into privacy mixer Tornado Cash thus making the hacked funds harder to track.
Following Saturday’s extended sell-off, a Bitcoin move back through to $50,000 levels would deliver some support to the broader market.