Bitcoin, the world’s largest cryptocurrency by market value, continued its sharp decline on Saturday, dropping 6.53% to $78,719.63 by 12:48 pm ET, extending losses from the previous session.
On Friday, bitcoin reached as low as $81,104, its weakest level since November 21, while the US dollar strengthened following the announcement that former Federal Reserve Governor Kevin Warsh will become the next Fed chair.
Read more : Bitcoin price rises to around PKR 25 million in Pakistan
Investors are concerned that Warsh may tighten liquidity in financial markets, as he has called for a smaller Fed balance sheet and broader changes to the central bank’s policies, which could impact speculative assets.
Cryptocurrencies like bitcoin and ether have historically benefited from an expanded Fed balance sheet, which provided liquidity that fueled rallies in crypto, metals, bonds, and other speculative investments, according to market analysts.
Read more : Pakistan urged to adopt Bitcoin as national reserve –
Ether also fell sharply, down 11.76% to $2,387.77 on Saturday, reflecting broader struggles in the cryptocurrency market, which has been losing momentum since last year while traditional assets like stocks and gold rallied.
Brian Jacobsen, chief economist at Annex Wealth Management, warned that abrupt price drops could trigger further selling, noting that bitcoin has already lost roughly one-third of its value since reaching record highs in October.