Crypto Bloodbath: Why Bitcoin Dipped Below $79K on Silver Sell-Off and Trump’s Fed Chair Pick

Crypto Bloodbath: Why on and Trump’s

The crypto market took a hard hit over the weekend. , dragging down Ethereum and Solana with it. This drop came after a wild week full of shocks from commodities and big political news. Retail traders are left scratching their heads as they deal with the fallout.

What Happened to Bitcoin, Ethereum, and Solana?

In late trading on Saturday, Bitcoin – the top crypto by market value – fell below $79,000. It dropped 6.1% in a short time. Ethereum did worse, sliding 9% to $2,445. Solana lost nearly 10%, hitting $105.50.

This wasn’t a small dip. It marked a sharp turn after recent gains. Traders who bought in high are now facing big losses. The total crypto market cap shrank fast as fear spread.

• Bitcoin: Down 6.1% to under $79K
• Ethereum: Down 9% to $2,445
• Solana: Down 9.9% to $105.50

Trump’s : Kevin Warsh Enters the Scene

President Donald Trump made a big announcement: he picked Kevin Warsh to be the next Federal Reserve chairman. Warsh, a former Fed governor, is seen as more hawkish on policy. This news boosted the U.S. dollar right away.

Why does this hurt crypto? Bitcoin often acts as a hedge against a strong dollar. When the USD gets stronger, investors see less need for alternatives like BTC. Warsh’s pick eased fears about Fed independence, making markets bet on tighter policy ahead.

If the Senate confirms him, Warsh replaces Jerome Powell. Powell’s term ends in May. Trump has long criticized Powell for not cutting rates fast enough. Since Powell started in 2018, Trump has pushed for looser money. Warsh might bring a shift, but his views could mean higher rates longer, bad for risk assets like crypto.

The Massive : Worst Day Since 1980

Adding to the pain was a huge crash in silver. On Friday, spot silver plunged 28% to $83.45 an ounce. It hit lows not seen in ages. Silver futures dropped even more – 31.4% to $78.53.

This was the worst day for silver since March 1980. Retail investors piled into silver as an inflation hedge, but something triggered a mass exit. Rumors of big institutional selling and overleveraged positions fueled the panic.

Silver’s crash rippled into crypto. Many traders bet on both as ‘hard assets.’ When silver tanked, it shook confidence in similar plays like Bitcoin.

Why Did This Perfect Storm Hit Now?

The market was already on edge. Crypto had rallied hard on election hopes and ETF inflows. But two big events collided:

1. USD Strength: Warsh’s nomination made the dollar index jump. A strong dollar squeezes crypto prices.
2. Commodity Chaos: Silver’s fall showed cracks in safe-haven bets. Gold held up better, but silver’s volatility scared everyone.
3. Retail Pain: Small traders got hit hardest. Leverage amplified losses across assets.

Experts say this dip is a healthy correction. Bitcoin’s still up big from last year. But short-term, sentiment is sour.

What Does Kevin Warsh Mean for Crypto?

Warsh served on the Fed board from 2006 to 2011. He’s known for pushing back on easy money during the financial crisis. Unlike Powell, Warsh favors rules-based policy over discretion.

For crypto:

• Higher Rates? Warsh might slow rate cuts, hurting growth stocks and crypto.
• Regulation: He could support clearer rules, good for institutions but tough on speculation.
• Dollar Dominance: Stronger USD caps Bitcoin’s role as global money.

Still, Trump’s pro-crypto stance might balance things. He wants the U.S. as ‘crypto capital.’ Watch Senate hearings for clues.

Silver Crash: Lessons for Crypto Traders

Silver went from hot commodity to crash victim fast. Why?

• Overhyped retail frenzy.
• Sudden supply news or margin calls.
• Links to industrial demand fears.

Crypto faces the same risks. Hype drives prices up, but leverage brings them down hard. Diversify and use stop-losses, traders say.

What’s Next for Bitcoin and Crypto?

Markets hate uncertainty, but this could pass. Key things to watch:

1. Senate vote on Warsh – delay could weaken USD.
2. Fed minutes and jobs data for rate hints.
3. Silver rebound? If it stabilizes, crypto might follow.
4. Bitcoin ETF flows – inflows could spark recovery.

Technicals show Bitcoin testing support at $78K. A break lower eyes $75K. But RSI is oversold, hinting at a bounce.

“Dips like this are buying chances for long-term holders,” says a top analyst.

Tips for Traders in Volatile Times

• Stay Informed: Follow Fed news and commodity moves.
• Manage Risk: Never risk more than 1-2% per trade.
• Dollar-Cost Average: Buy the dip steadily.
• HODL if Possible: Bitcoin’s history favors patience.

The story shows how connected markets are. Politics, metals, and crypto all mix. Stay calm, do your research, and position for the rebound.

What do you think? Will Warsh’s pick kill the bull run, or is this just noise? Share in the comments.

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