Bitcoin Price Crash: as Fed Chair Nomination Sparks Sell-Off

In a sharp turn for the crypto market, Bitcoin (BTC) has tumbled to a fresh low near $81,000, marking a steep decline that has wiped out nearly $10,000 from its value in just 24 hours. As of late Thursday U.S. time, BTC bounced slightly to around $82,880, but the damage is done. This plunge has triggered massive liquidations and dragged down the entire crypto sector.

What Happened to Bitcoin’s Price Today?

The world’s top cryptocurrency started the day higher but reversed hard in evening trading. BTC hit an intraday low of $81,000 before clawing back some ground. This puts it just above its November low, testing key support levels that traders are watching closely.

• 24-Hour Drop: Nearly $10,000 loss per BTC.
• Intraday Low: $81,000.
• Current Price: Hovering at $82,880.

The speed of this drop caught many off guard, with over $777 million in crypto long positions liquidated in the past hour alone. Over 24 hours, that figure balloons to a whopping $1.75 billion, per data from CoinGlass. Longs are bets that prices will rise, so this wipeout shows leveraged traders got burned bad.

Broader Crypto Market Feels the Pain

It’s not just Bitcoin. The whole market is down 7% to 9% in the last day:

• Ether (ETH): Around $2,717, dipping to $2,700.
• BNB: Near $848, now at $843.
• XRP: Slid to $1.7602, holding $1.74.

This red wave signals risk-off mood across assets. When BTC leads the fall, altcoins often follow suit.

Technical Analysis: Where Could BTC Go Next?

Chart watchers are on edge. BTC is barely holding above its November low of just under $81,000. A CoinDesk-style view warns that breaking below $85,000 opens the door to deeper pain.

Key support levels to watch:

1. $81,000: Recent November low – already tested.
2. $75,000: April 2025 tariff-related low – next big line in the sand.
3. $70,000: Analysts’ worst-case if supports fail.

If BTC holds here, it could rebound toward $84,000 resistance. But volume is heavy on the downside, so caution rules.

“Bitcoin holds $84,000 — for now — but analysts warn of drop to $70,000 if support fails.”

Why the Sudden Plunge? Trump’s Fed Chair Pick Takes Center Stage

Traders point to U.S. political news as the spark. President Donald Trump announced he’ll name his nominee for Federal Reserve Chair on Friday morning. This comes after he criticized Jerome Powell and the Fed for not cutting rates fast enough.

The frontrunner? Former Fed Board member Kevin Warsh. Polymarket odds jumped to 87% for Warsh in hours (from 37% earlier). He visited the White House Thursday, per CNBC reports.

Before Warsh surged, BlackRock’s Rick Rieder was seen as a dovish (rate-cut friendly) choice. Warsh is viewed as more hawkish – favoring tighter policy. Higher rates hurt risk assets like crypto by making safer options like bonds more appealing.

Hedge fund legend Stan Druckenmiller backs Warsh: “No one better equipped.” He challenges the hawk label, saying Warsh could surprise on the dovish side. Druckenmiller built billions betting against the crowd.

How Fed Policy Impacts Bitcoin and Crypto

The Fed sets U.S. interest rates, which ripple worldwide. Low rates fuel bull markets in stocks and crypto by encouraging borrowing and risk-taking. Powell’s recent stance disappointed markets hoping for cuts.

A Trump-picked chair like Warsh could mean:

• Slower rate cuts: Pressure on BTC prices.
• Inflation focus: If tariffs rise, Fed might stay tough.
• Pro-crypto shift? Trump supports Bitcoin, but Fed independence matters.

Markets hate uncertainty. This nomination buzz fueled the sell-off as traders de-risk.

Liquidations Breakdown: Who Got Hit Hardest?

$1.75 billion in 24-hour liquidations is huge. Here’s why it matters:

Mostly longs on BTC and ETH. Exchanges like Binance and Bybit saw the most action. This cascades: One liquidation triggers more as prices drop.

What’s Next for Bitcoin Price?

Short-term: Watch Friday’s announcement. If Warsh confirmed and markets see him as hawkish, $75,000 could test. Dovish signals might spark a bounce.

Longer-term: BTC’s bull story remains – ETFs inflows strong, halving effects linger, Trump pro-crypto stance. But macro headwinds like Fed policy loom.

Tip for traders: Use stop-losses, avoid high leverage. For holders: Zoom out, volatility is crypto’s norm.

Final Thoughts on This BTC Dip

The is painful but not the end. Crypto rebounds from worse. Stay informed on Fed news – it drives the bus right now. What’s your take? Will BTC hold $80K or break lower?

Prices update in real-time; always DYOR before trading.

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