1. Short Description:
Bitcoin plunged below $79,000 as a hawkish Fed chair pick by Trump strengthened the dollar, sparking a broad crypto selloff alongside a historic silver crash.
2. Read Time: 2 Minutes, 15 Seconds
3. Main Article:
Crypto Markets Tumble on Hawkish Fed Chair News, Dollar Strength
Bitcoin, Ethereum, and Solana slumped over the weekend as financial markets digested President Donald Trump’s pivotal announcement of his pick for the next Federal Reserve chairman. In late Saturday trading, bitcoin, the world’s largest cryptocurrency, sank 6.1% to break below the $79,000 level. The selloff was broad, with Ethereum dropping roughly 9% and Solana falling nearly 10%. This sharp downturn highlights the growing sensitivity of digital asset markets to traditional macroeconomic forces and central bank policy expectations.
The catalyst was Trump’s selection of former Fed governor Kevin Warsh to replace current Chairman Jerome Powell. Markets interpreted the choice of Warsh, perceived as more hawkish, as a signal of continued Federal Reserve focus on fighting inflation, potentially delaying rate cuts. This bolstered the U.S. dollar, which often trades inversely to risk assets like cryptocurrency. A stronger dollar can diminish bitcoin’s appeal as an alternative store of value or hedge. The move extends a volatile week for retail investors, who were already reeling from a separate market shock.
The crypto plunge followed a historic collapse in the silver market on Friday, marking its worst day in over four decades. This one-two punch of volatility in both precious metals and digital assets underscores the interconnected nature of modern finance and the profound impact of Federal Reserve leadership on investor sentiment across asset classes. As the Senate confirmation process for Warsh begins, markets will remain highly attuned to any cues about the future path of U.S. monetary policy and its implications for the dollar strength and risk appetite.
4. Short Summary:
Cryptocurrencies, led by Bitcoin, faced a sharp selloff triggered by President Trump’s selection of a perceived hawk, Kevin Warsh, as the next Federal Reserve chair. This news strengthened the U.S. dollar, pressuring risk assets, and compounded a week of extreme volatility that included a historic crash in silver. The events underscore the deep connection between crypto markets and traditional macroeconomic policy.
