Bitcoin has experienced a sharp decline, causing significant turbulence in the cryptocurrency market. Below are the key highlights and reasons behind this latest crash:
1. Price Action
Bitcoin (BTC): The critical support level of $70,000 has been breached, with prices sliding toward $69,800—its lowest point since November 2024.
Ethereum (ETH): Following the trend, Ether has dropped approximately 2%, trading near $2,090.
Yearly Performance: Since the start of 2026, Bitcoin has wiped out nearly 20% of its value.
2. Primary Triggers for the Sell-off
Analysts point toward the nomination of Kevin Warsh as the next Federal Reserve Chair as a major turning point.
The "Hawkish" Threat: Warsh is known for favoring tighter monetary policies. Markets fear he will aggressively shrink the Fed's balance sheet, reducing the global liquidity that typically fuels speculative assets like crypto.
3. Institutional Capital Exit
Massive ETF Outflows: Bitcoin spot ETFs saw a heavy exodus in January, with over $3 Billion withdrawn.
Shifting Sentiment: Traditional investors are showing signs of "crypto fatigue," moving their capital into safer haven assets amid growing global uncertainty.
4. Pressure on Crypto Miners
The falling price is making it difficult for Bitcoin miners to stay profitable due to rising operational costs. If the price continues to slide, miners may be forced to liquidate their holdings, potentially triggering a "vicious cycle" of further selling.
Summary: The market is currently gripped by a "Risk-Off" sentiment. If Bitcoin fails to reclaim the $70,000 mark quickly, the next major support zone is expected around $68,000 or lower.
BTCUSDTPerp.68,052.8-1.14%
ETHUSDTPerp.1,978.12-2.39%
XVSUSDTPerp.3.198-7.38%
