Crypto Market Vulnerability Exposed by DeFi Exploit and Fed Policy Uncertainty

Bitcoin experienced a significant decline, falling to $82,605 due to Fed policy uncertainty and a $128M exploit in the Balancer DeFi platform. This led to $3.79B in ETF outflows and $1.3B in liquidations, impacting traders and raising concerns about the security of DeFi and algorithmic stablecoins. The market's fragility was highlighted by a spike in panic selling and a drop in the Fear & Greed Index.