Bitcoin Falls Below $79,000 After Fed Pick Shakes Markets
Bitcoin fell below $79,000 after a turbulent week across global markets. The Bitcoin Fed shock unsettled investors as currencies and commodities swung sharply. Late Saturday, Bitcoin dropped 6.1% to trade under $79,000. Ethereum and Solana also declined as traders reacted to fresh economic signals. Ethereum slid nearly 9% to around $2,445.
Meanwhile, Solana fell close to 10% and hovered near $105.
Trump’s Fed Choice Boosts Dollar Strength
Markets reacted strongly after President Donald Trump named Kevin Warsh as his pick for Federal Reserve chair. As a result, the U.S. dollar strengthened and pressured risk assets like crypto. The announcement eased concerns about the Fed’s independence. However, a stronger dollar often reduces Bitcoin’s appeal as an alternative currency.
If confirmed, Warsh would replace current chair Jerome Powell. Powell’s term ends in May, therefore the transition could reshape monetary policy. Trump has long criticized Powell over interest rate decisions. In particular, he opposed Powell’s reluctance to cut rates in 2018.
Silver Crash Adds Pressure on Retail Investors
Crypto losses followed a historic sell off in the silver market. Retail investors felt the impact across multiple asset classes..Spot silver plunged 28% to about $83 an ounce.
For example, this marked its worst daily decline since 1980..Silver futures performed even worse during Friday’s session.
They dropped over 31% and settled near $78.50. As a result, confidence weakened among small investors. Many reduced exposure to volatile assets, including cryptocurrencies.
What This Means for the Crypto Market
The Bitcoin Fed shock highlights growing links between policy and digital assets.
In addition, macroeconomic shifts continue to drive crypto volatility. Despite the pullback, long term interest in crypto remains strong.
However, short term price swings may persist as markets digest new signals. Investors now await Senate confirmation hearings closely. Therefore, policy clarity could influence crypto trends in coming weeks.
