Bitcoin and Equities Plummet Amid Inflation Fears; Hyperliquid Hack Exposes Vulnerabilities
Bitcoin and equities plummeted on Friday, fuelled by soaring U.S. inflation and waning investor confidence. This sent shockwaves through the crypto market, sparking fears of stagflation. Meanwhile, a trader's aggressive move on a decentralised exchange caused a bitcoin price to skyrocket, exposing vulnerabilities in the platform's liquidation engine.
The sell-off was triggered by hotter-than-expected U.S. inflation data, which raised concerns about a potential economic slowdown. Bitcoin, the world's largest cryptocurrency, fell in tandem with equities, exacerbating fears of stagflation. GameStop, a retail-focused company, also experienced volatility after doubling down on its bitcoin holdings.
In a separate development, a trader exploited a weakness in Hyperliquid's liquidation engine by opening large positions in Jelly-My-Jelly's perpetual futures market. This caused the token's price to surge by over 500%, highlighting cracks in the platform's security measures. The attack began on March 26, 2025, when a 'whale' initiated the sell-off, forcing the internal liquidity pool into a short position.
Crypto.com's exchange token, CRO, saw a spike in volume following the announcement of Trump Media's plans to launch crypto-related ETFs. However, its liquidity remains low compared to other assets vying for ETF status. The Trump Media group plans to invest in projects with a 'Made in America' theme, including Bitcoin and CRO. Binance and OKX listed Jelly-My-Jelly perps following the surge of activity on Bybit.
Bitcoin's rising implied volatility signals uncertainty ahead, with option traders bracing for near-term turbulence likely around the April 2 tariff announcement. USDT-USD cumulative volume delta (CVD) turned positive over the past 15 days, indicating a potential shift in sentiment towards USD-backed stablecoins in developed markets.
The crypto market faces multiple challenges, from economic uncertainties to security vulnerabilities. As the market awaits the April 2 tariff announcement, investors remain cautious. Meanwhile, the Hyperliquid incident serves as a reminder for platforms to strengthen their security measures to prevent similar attacks in the future.
