Bitcoin Falling After Warsh Nomination Shakes Crypto Market

Bitcoin experienced a sharp decline over the weekend, dropping below $78,000 for the first time since 2024. On Friday, it was trading near $84,000, but within 24 hours it fell to about $77,900—losing more than 7% of its value. This drop reflects growing concerns among investors about the future direction of U.S. interest rates.

The cryptocurrency had reached a high of $126,198 in October, but prices have mostly fallen since then. Many investors have reduced their exposure to risky assets due to uncertainty over Federal Reserve policies. The decline was not limited to Bitcoin alone, as major digital currencies such as Ethereum, BNB, XRP, and Solana also recorded losses of at least 10% over the past week.

At the same time, gold reached a record high of $5,300 before easing, while the U.S. dollar strengthened significantly. These movements suggest that investors are shifting toward traditional safe-haven assets.

Warsh Nomination Raises Concerns Over Crypto Outlook

Bitcoin’s downturn followed President Donald Trump’s nomination of Kevin Warsh as chair of the Federal Reserve. The announcement changed expectations about monetary policy, leading markets to believe that interest rates could remain high for longer.

Although Warsh has previously described Bitcoin as “new gold” and expressed confidence in its future, analysts say his strong focus on monetary discipline may negatively affect crypto markets. Markus Thielen of 10x Research noted that Warsh supports higher real interest rates and reduced liquidity, conditions that usually weaken speculative assets like cryptocurrencies.

Higher interest rates often encourage investors to move their money away from volatile investments and into safer options. As a result, expectations of tighter financial conditions have contributed to Bitcoin’s recent decline.