Bitcoin Crashes Under $79K: How Silver’s Epic Sell-Off and Trump’s Fed Chair Choice Rocked Crypto
Bitcoin Crashes Under $79K: How Silver’s Epic Sell-Off and Trump’s Fed Chair Choice Rocked Crypto
The crypto market took a hard hit this weekend.
What Happened to Bitcoin and Major Coins?
In late Saturday trading, Bitcoin fell below $79,000. It dropped 6.1% from recent highs. Ethereum slid even more, down about 9% to $2,445. Solana lost 9.9%, hitting $105.50. These moves wiped out gains from earlier in the week.
Retail investors felt the pain most. Many had piled into crypto hoping for quick wins. But now, they face losses as the market cools off. The total crypto market cap shrank by billions in hours.
- Bitcoin (BTC): -6.1% to under $79K
- Ethereum (ETH): -9% to $2,445
- Solana (SOL): -9.9% to $105.50
Trump’s Fed Chair Pick: Kevin Warsh Enters the Scene
President Donald Trump made waves by picking Kevin Warsh as the next Federal Reserve chair. Warsh is a former Fed governor known for his views on tight money policy. This news boosted the U.S. dollar big time.
Why does this hurt crypto? Bitcoin often acts as a hedge against a strong dollar. When the dollar rises, investors see less need for alternatives like BTC. Warsh’s pick eased fears about Fed independence. Markets think he won’t push for loose policy like some hoped.
If the Senate confirms him, Warsh replaces Jerome Powell. Powell’s term ends in May. Trump has long bashed Powell for not cutting rates fast enough. Since Powell started in 2018, Trump called for lower rates many times. A new chair could mean steady or higher rates, bad for risk assets like crypto.
Silver Sell-Off: The Worst Day Since 1980
Adding fuel to the fire, silver crashed hard on Friday. Spot silver fell 28% to $83.45 per ounce. It traded near daily lows. Silver futures plunged 31.4% to $78.53. This was the biggest one-day drop since March 1980.
Silver’s tumble signals broad risk-off mood. Commodities like silver often move with crypto during big market shifts. Retail traders, who love both, got hit twice. Many used silver as a safe bet, but now that’s gone.
Why the silver crash? High prices earlier drew sellers. Plus, stronger dollar from Fed news made metals less attractive. Crypto followed suit as investors fled to cash.
Why Are Crypto and Commodities Linked?
Crypto isn’t alone in this pain. Stocks and metals dipped too. Here’s why:
- Dollar Strength: Strong USD hurts gold, silver, and Bitcoin.
- Risk Appetite: Traders dump high-risk assets first in uncertainty.
- Retail Overheating: Too many newbies chased highs, now facing reality.
- Macro Shifts: Fed policy calls the shots on rates and liquidity.
Bitcoin started as “digital gold.” But when real gold and silver crash, BTC feels it. This week showed how tied crypto is to old markets.
Impact on Retail Traders and the Broader Market
Retail investors took the brunt. Platforms like Binance and Coinbase saw heavy selling. Leverage wiped out many positions. Social media buzzed with panic posts.
Big players might buy the dip. Institutions see these drops as chances. But for everyday traders, it’s a lesson in volatility.
Ethereum and Solana hurt more due to their beta. They swing harder than BTC. Solana’s drop tied to network hype fading amid market fear.
What Comes Next for Bitcoin and Crypto?
Short-term, more pain possible. Watch dollar index and Fed news. If Warsh gets confirmed fast, dollar stays strong. Bitcoin could test $75K support.
Long-term, bulls stay hopeful. Bitcoin halving effects linger. Trump pro-crypto stance could help later. But rate cuts seem off the table now.
Key levels to watch:
| Asset | Support | Resistance |
|---|---|---|
| Bitcoin | $75,000 | $82,000 |
| Ethereum | $2,300 | $2,600 |
| Silver | $75/oz | $90/oz |
Advice for traders: Use stop-losses. Diversify. Don’t chase FOMO.
Final Thoughts
What do you think? Will BTC rebound soon? Drop your views in comments.
