Warsh Ends the 'Dollar Devaluation Trade'? Crypto Market Continues Plunge Over Weekend, Bitcoin Breaks Below $80,000 Mark
The cryptocurrency market experienced a significant sell-off over the weekend, with Bitcoin falling below the $80,000 mark to its lowest level since April of last year. The decline, which extended a month-long downward trend, was partly triggered by former President Trump’s nomination of Kevin Warsh as the next Federal Reserve Chair. Analysts suggest that Warsh’s expected hawkish stance on inflation may reduce the appeal of “sell America” trades, including bets against the U.S. dollar.
During the sell-off, Bitcoin dropped as much as 10% to around $75,710, while Ethereum and Solana saw even steeper declines of over 17%. Approximately $1.6 billion in long and short positions were liquidated within 24 hours, with outflows from spot ETFs further indicating weak investor interest. Market observers noted particularly low retail engagement, with trading volumes expected to remain subdued in the near term.
Notably, Bitcoin failed to attract safe-haven demand despite heightened geopolitical tensions between Israel and Iran, as well as a surge in gold and silver prices. Instead, traditional assets like precious metals and cash continued to be preferred shelters for investors concerned about fiat currency risks. Regulatory uncertainty in the U.S., including delays in crypto market structure legislation, also contributed to the negative sentiment.
Warsh nomination appears to have reversed earlier strong rallies in cryptocurrencies, gold, and silver, as markets anticipate a less interventionist Fed under his potential leadership.
华尔街日报2 days ago 01:54