The cryptocurrency market experienced a significant downturn as Bitcoin fell sharply below the $80,000 mark for the first time since April 2025. This decline, observed during Saturday’s trading in New York, marks the fourth consecutive monthly loss for the world’s largest cryptocurrency and signals its longest losing streak since 2018, according to reports from Asharq Business with Bloomberg.
Market Reaction to Federal Reserve News
Bitcoin’s decline was exacerbated by the announcement that U.S. President Donald Trump had nominated Kevin Warsh as the next Federal Reserve Chair. Warsh, a former Fed governor, is seen as generally supportive of digital assets but has maintained a cautious stance compared to other potential nominees like Rick Rieder of BlackRock.
This uncertainty regarding Warsh’s approach to monetary policy has unsettled investors in the cryptocurrency market. Many had hoped for a more dovish Federal Reserve leadership to support growth-sensitive assets like Bitcoin. Instead, traders adjusted their expectations, bracing for tighter monetary policies that could further pressure the cryptocurrency market.
Broader Crypto Market Losses
Bitcoin’s price fell by more than 10%, reaching $75,710 during Saturday afternoon trading. Altcoins suffered even steeper declines, with Ethereum (ETH), the second-largest cryptocurrency, losing up to 17% of its value. Similarly, Solana (SOL) recorded a drop of over 17%.
The intense sell-off wiped out $111 billion from the total cryptocurrency market capitalization in just 24 hours, according to CoinGecko. Additionally, liquidation data from CoinGlass revealed that $1.6 billion worth of long and short positions were wiped out during the same period.
Declining Investor Confidence
The prolonged sell-off reflects a broader loss of confidence among cryptocurrency investors. Data from CryptoQuant highlighted that Bitcoin holders are now facing sustained net realized losses for the first time since 2023. This means that a growing number of investors are selling their assets at a loss, even without a dramatic collapse in spot prices.
The absence of strong demand has raised questions about Bitcoin’s role in investment portfolios. Once heralded as a hedge against inflation and a momentum-driven investment, Bitcoin now struggles to fulfill either role.
Safe-Haven Assets and Risk Aversion
Amid the pessimism in the cryptocurrency market, traditional safe-haven assets like gold and silver also faced significant losses. Gold dropped by 12%, falling below $5,000 per ounce, while silver endured its largest single-day drop in history, losing a third of its value.
The simultaneous decline of both cryptocurrencies and safe-haven assets underscores the broader risk-off sentiment gripping global markets. Investors appear increasingly focused on cash and other traditional safe-haven vehicles, further diminishing the appeal of digital assets.
Conclusion
Bitcoin’s sharp decline below $80,000 highlights the challenges facing the cryptocurrency market in an environment of tightening monetary policy and reduced risk appetite. As uncertainty continues to weigh on investor sentiment, the road to recovery for Bitcoin and the broader crypto market appears uncertain.
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