Bitcoin fell below the closely monitored $80,000 level over the weekend after markets digested the confirmation of Kevin Warsh's appointment as the next Federal Reserve Chair, triggering a wave of leveraged liquidations across the cryptocurrency markets, according to QCP Asia analysts.

In a market note released on Monday, QCP stated that Bitcoin briefly dropped to around $74,500 after breaking a key technical support level, while Ether fell below $2,170.

This decline led to the liquidation of over $2.5 billion in leveraged long positions, increasing downward pressure at a time when sentiment was already fragile due to ongoing outflows from U.S. spot Bitcoin funds.