Bybit Hack, Tariffs Shake Crypto Market

CRYPTO
Bybit Hack, Tariffs Shake Crypto Market

Bitcoin fell to $78,782 in Asian trading, down 5.5% on the day and 25% below its mid-December all-time high. The decline wipes out gains following Trump’s election, as investor sentiment sours due to global market instability and uncertainty over his tariff policies.

The selloff deepened after Bybit, a major crypto exchange, suffered a $1.5 billion hack—the largest crypto heist in history. Jeff Mei, COO at BTSE, noted that market volatility is reacting to the Bybit incident, inflation concerns, and expectations of fewer Fed rate cuts.

Despite the downturn, some crypto bulls remain optimistic. Trump has signed an executive order promoting crypto and established a task force to develop a regulatory framework. Standard Chartered’s Geoffrey Kendrick predicts Bitcoin could surpass $200,000 this year, citing growing institutional adoption and regulatory clarity. While volatility remains, long-term investors see potential in Trump’s pro-crypto stance and policy direction.

FINANCE
MrBeast Seeks $5B Company Valuation

YouTube star MrBeast, aka Jimmy Donaldson, is seeking to raise hundreds of millions in a funding round valuing his company at $5 billion, according to sources. He has approached financial firms and investors, though talks are still in early stages.

Donaldson plans to use the funds to expand his holding company, which includes Feastables, Lunchly, and his video production business. His ventures generated over $400 million in sales last year, and he aims to scale both his media and packaged goods businesses.

Beyond YouTube, where his large-scale challenges attract millions of views, MrBeast starred in Beast Games, Amazon Prime’s most-watched unscripted series. Despite Amazon’s $100 million investment, he admitted to losing “tens of millions” on production. Amazon has committed to more seasons, with a $250 million deal in discussion.

Previously, MrBeast raised funds from Alpha Wave Global and was reported to be involved in a bid to acquire TikTok.

TECH
PayPal Expands Partnerships, Eyes Growth

PayPal is expanding partnerships while focusing on its core consumer base. The digital payments industry has become highly competitive, with Apple and others challenging PayPal’s dominance. Since the pandemic, its stock has been volatile—soaring from $110 in early 2020 to $310 in 2021, now trading around $72.

To stay competitive, PayPal is strengthening merchant services. Its expanded deal with Verifone enhances omnichannel solutions, while a partnership with JPMorgan Chase accelerates global checkout options. Despite a 21% stock gain last year, recent investor reactions have been lukewarm, with shares down 16% in 2024.

PayPal’s key focus is its branded checkout, aiming for 8-10% annual growth by 2027, up from 6% in 2024. The company is also looking to better monetize Venmo, targeting $2 billion in revenue by 2027. With innovations like Fastlane and personalized incentives, PayPal aims to prove it remains a dominant force in digital payments.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.