Bitcoin was at $78,309, down about 5% from the prior session. The cryptocurrency, which leads the market by market capitalization, slid under the $80,000 level—a threshold not breached since April 11 of last year. Bitcoin hit $78,309 after a 24-hour drop, marking a fresh retreat in the latest sell-off. Analysts pointed to former President Trump’s nomination of Kevin Warsh to chair the Federal Reserve as a factor behind renewed selling pressure, given his past support for tighter policy.
Bloomberg described Warsh’s nomination as signaling a potential tilt toward tighter policy, fueling market anxiety. Hayden Hughes of Tokenize Capital Partners described Warsh as “an orthodox economist who understands the risks of cutting rates too quickly.” The market also faced liquidity concerns, with 12 U.S.-listed Bitcoin spot ETFs recording three straight months of net outflows, totaling about $5.7 billion. CNBC noted that Bitcoin often declines amid geopolitical tensions, challenging its status as a safe-haven.
An analyst cited that gold rose about 65% last year, while Bitcoin fell roughly 6%, underscoring a divergent risk profile. Further declines cannot be ruled out, and weekend liquidity tends to thin, potentially widening losses.
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