Bitcoin Suffers Heavy Losses, Falling Below $75,000
Bitcoin, the world's largest cryptocurrency by market capitalization, fell 6.53% to $78,719.63 on Saturday, January 31.
Bitcoin entered trading on Saturday with a market capitalization of $1.65 trillion, struggling to recover, but its efforts appear unsuccessful.
The cryptocurrency's decline follows Trump's selection of Kevin Warsh to head the Federal Reserve, a move that strengthened the US dollar and eased concerns about the central bank's independence. A stronger dollar could reduce Bitcoin's appeal as an alternative currency among investors.
Bitcoin, the leading cryptocurrency, fell to $81,104 on Friday, its lowest level since November 21, after US President Donald Trump nominated former Federal Reserve official Kevin Warsh to head the central bank.
Ether also dropped 11.76% to $2,387.77 on Saturday afternoon, as cryptocurrencies struggle to find a clear direction since their decline last year, having lagged behind the major rally in gold and stocks.
Cryptocurrencies are facing a difficult period, with Bitcoin losing about a third of its value since hitting record highs in October.
Bitcoin's daily trading volume reached a remarkable $53.64 billion, according to Coinbase, indicating ample liquidity, but it wasn't enough to overcome bearish expectations.
The market movements come after retail traders absorbed a turbulent week marked by sharp swings in commodity prices and a long-awaited announcement from President Donald Trump regarding his nominee for the next Federal Reserve chair.
If confirmed by the U.S. Senate, Warsh would succeed current chair Jerome Powell, whose term expires in May. Trump has criticized Powell, particularly for his reluctance to cut interest rates, since he took over as Fed chair in 2018.
The decline in cryptocurrencies is the latest blow to retail investors, who were hit hard by the sharp sell-off in spot silver on Friday, the market's worst day since March 1980.
