Crypto Market Plunges into Extreme Fear Amid Bybit Hack and LIBRA Uncertainty

The cryptocurrency market is currently gripped by a wave of extreme fear, according to Santiment, a leading provider of on-chain data and sentiment analysis. This sentiment is largely driven by two significant events: the recent hack of the Bybit exchange and the issuance of LIBRA, a stablecoin project by Facebook.

The Bybit hack, which occurred earlier this month, resulted in the loss of over $33 million worth of cryptocurrency. This incident has raised serious concerns about the security of cryptocurrency exchanges and has left investors on edge. The hack has also led to a significant drop in the price of Bitcoin, which has further exacerbated the sense of fear in the market.

Adding to the market's anxiety is the issuance of LIBRA, a stablecoin project by Facebook. The project has faced significant regulatory hurdles and has been the subject of intense scrutiny by lawmakers and central banks around the world. The uncertainty surrounding LIBRA's future has contributed to the overall sense of fear in the market.

Santiment's sentiment score, which measures the overall sentiment of the crypto community, has plummeted in recent days. This decline mirrors the situation before the price rebound on February 17th and 18th, when the market experienced a similar wave of fear. While it is difficult to predict the future of the market, it is worth noting that the market often moves in the opposite direction of what retail traders expect.

Despite the current state of extreme fear, it is important to remember that the cryptocurrency market is highly volatile and unpredictable. While the Bybit hack and LIBRA issuance have certainly contributed to the current sentiment, it is possible that the market will rebound in the near future. As always, investors should exercise caution and do their own research before making any investment decisions.