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Bitcoin Slips Below $90K As Ether Plummets Amid Market Turmoil

Bitcoin and Ether tumbled to multi-month lows on Tuesday amid a broad cross-market sell-off and lingering fallout from last week’s $1.5 billion ether hack at crypto exchange Bybit. The market’s latest downturn highlights the fragility of even the world’s largest digital assets during periods of heightened uncertainty.

Bitcoin’s Price Slide

The flagship cryptocurrency, Bitcoin, dropped as much as 6% to $88,245—its lowest level since November and the first time it has dipped below $90,000 since mid-January. This breach of a key psychological barrier underscores investor apprehension as market volatility intensifies.

Ether’s Sharp Decline

Not far behind, Ether, the second-largest cryptocurrency by market value, shed up to 11% at one point, falling to $2,333. This marks its steepest drop since October, as traders continue to grapple with the aftershocks of the recent security breach.

In a turbulent environment, these movements serve as a stark reminder that even established cryptocurrencies remain vulnerable to external shocks and systemic market pressures. As the sector navigates this challenging phase, market participants are closely watching for signs of stabilization amid ongoing uncertainty.

Nvidia Launches Open AI Security Alliance With Microsoft, Palantir And SpaceX

Nvidia and a coalition of technology companies on Monday launched the Open Secure AI Alliance, a new initiative aimed at strengthening artificial intelligence security through open models.

The alliance was announced days after a cyberattack involving OpenAI models targeted AI platform Hugging Face, an incident that renewed debate over whether open or closed AI systems are better suited for cybersecurity.

Open Models at the Core

Nvidia said the alliance will focus on identifying, disclosing and mitigating AI security vulnerabilities using open technologies.

“The Open Secure AI Alliance will work to remediate and disclose vulnerabilities using open technologies,” the company said in a statement. “The recent Hugging Face security incident delivered a clear reminder: cyber defenders need open, frontier agentic systems for self-defense.”

The alliance includes Microsoft, SpaceX, Palantir and dozens of other technology companies from the U.S. and Europe.

Open-weight models can be downloaded, modified and deployed on an organisation’s own infrastructure, allowing security teams to inspect and adapt them for defensive purposes. By comparison, proprietary models from companies such as OpenAI and Anthropic are generally accessed through controlled platforms.

U.S. Scrutiny of Chinese AI Grows

The initiative comes as U.S. policymakers weigh potential restrictions on Chinese AI models, particularly open-weight systems. Officials have raised concerns that some Chinese companies may be using distillation techniques to extract knowledge from leading U.S. AI models.

Treasury Secretary Scott Bessent said last week that Chinese companies involved in such activity could face sanctions.

Chris McGuire, senior fellow for China and emerging technologies at the Council on Foreign Relations, told CNBC that potential restrictions could extend beyond model downloads to include API access and cloud-hosted inference services. He added that the debate in Washington is centred on intellectual property protection rather than opposition to open-source AI.

Industry Pushes Back

Last week, Nvidia, Microsoft, Meta, Palantir and more than 20 other companies urged policymakers not to impose what they described as “premature restrictions” on open-weight AI models, warning such measures could reduce competition and encourage innovation to move overseas.

The launch of the Open Secure AI Alliance signals growing industry support for open AI systems as governments consider new regulatory and security measures.

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