Bitcoin fell below the $80,000 support level on Saturday following the confirmation of Kevin Warsh as the next Federal Reserve Chair.
BTC and ETH face pressure after fed announcement
The move triggered a wave of deleveraging, with BTC briefly hitting $74,500 and Ethereum slipping below $2,170. Over $2.5 billion in leveraged long positions were liquidated, intensifying downward pressure on prices. The declines come amid ongoing ETF outflows, marking Bitcoin’s fourth consecutive monthly drop.
Risk aversion has extended beyond crypto, with equities and traditional safe-haven assets feeling the effects. Gold and silver retraced from recent highs as investors recalibrated expectations under a potential Warsh-led Fed, which markets see leaning toward earlier policy normalization or tightening. Higher margin requirements in futures markets also accelerated liquidations, amplifying the sell-off.
Technical levels and near-term outlook
BTC is currently stabilizing around $74,500, a level consistent with 2025 cycle lows. Options markets remain cautious, with put demand still elevated, though less extreme than previous stress periods. Analysts note that the moderation in hedging activity may signal reduced BTC exposure and potential early positioning for a market base.
Price momentum remains fragile. Any sustained drop below $74,000 could trigger further declines, potentially revisiting 2024 trading ranges. Conversely, a rebound above $80,000 might ease volatility and normalize options skew. Market watchers will also track institutional accumulation trends, geopolitical developments especially in Iran and any statements from Warsh that could temper expectations of tighter monetary policy.
As volatility continues, traders are advised to manage downside risk carefully, using strategies that protect capital while allowing for limited upside participation in any short-term recovery.
Notably, crypto markets weakened during early Asian trading, extending a cautious tone seen over the weekend as global risk sentiment deteriorated. More than $550 million in leveraged long positions were liquidated, with Bitcoin briefly slipping below before stabilising.
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