Bitcoin (BTC-USD), the world\u2019s largest cryptocurrency by market capitalization, slid 6.53% to $78,719.63 as of 12:48 p.m. ET (1748 GMT) on Saturday, extending losses from the previous trading session, according to Reuters.<\/p>\n
On Friday, bitcoin fell to an intraday low of $81,104, its weakest level since November 21. The decline came as the U.S. dollar strengthened following the selection of former Federal Reserve Governor Kevin Warsh as the next Fed chair. Investors are increasingly uneasy that Warsh could adopt tighter liquidity policies across the financial system.<\/p>\n
Warsh has previously argued for major changes at the central bank, including a reduction in the Federal Reserve\u2019s balance sheet.<\/p>\n
Bitcoin and other digital assets have historically benefited from an expansive Fed balance sheet, often rallying when abundant liquidity supported risk-taking and speculative investments.<\/p>\n
Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin, noted that the Fed\u2019s \u201coversized balance sheet combined with aggressive bank regulation\u201d has kept liquidity concentrated on Wall Street rather than reaching the broader economy. He said this dynamic has contributed to inflated valuations across assets such as bonds, cryptocurrencies, metals, and meme stocks.<\/p>\n
Ether also saw sharp losses, falling 11.76% to $2,387.77 on Saturday afternoon. The broader crypto market has struggled to regain momentum since last year\u2019s downturn, lagging behind strong rallies in gold and equities.<\/p>\n
\u201cPrice corrections can sometimes reinforce themselves,\u201d Jacobsen said, adding that Friday\u2019s sudden drop served as a reminder of underlying risks. He warned that additional selling pressure is \u201cpossible, if not likely, over the coming days.\u201d<\/p>\n
Cryptocurrencies are facing a difficult period during what was once expected to be a favorable phase of capital inflows and supportive regulation under President Donald Trump. Bitcoin, the market\u2019s benchmark asset, has now shed roughly one-third of its value since reaching record highs in October last year.<\/p>\n","protected":false},"excerpt":{"rendered":"
Bitcoin (BTC-USD), the world\u2019s largest cryptocurrency by market capitalization, slid 6.53% to $78,719.63 as of 12:48 p.m. ET (1748 GMT) on Saturday, extending losses from the previous trading session, according to Reuters. On Friday, bitcoin fell to an intraday low of $81,104, its weakest level since November 21. The decline came as the U.S. dollar […]<\/p>\n","protected":false},"author":1,"featured_media":13,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[11,13,12],"class_list":["post-12","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-bitcoin","tag-bitcoin-price","tag-bitcoinremove-term"],"yoast_head":"\n