- Bitcoin Price fell sharply after former Fed governor Kevin Warsh was revealed as President Donald Trump‘s nominee for Fed chair.
- Analysts warn a break below the key $80,000 support level could trigger an accelerated sell-off, with a potential 40% crash to $50,000.
- The total crypto market capitalization, already below $3 trillion, could see a worst-case decline to the $1.8 trillion to $2 trillion range.
The Bitcoin price tumbled on Wednesday as U.S. President Donald Trump announced former Federal Reserve governor Kevin Warsh as his nominee to lead the central bank. This development ended months of market speculation and intensified fears of a deeper digital asset correction.
Consequently, the price of bitcoin has plunged to around $80,000 from its October peak of $126,000. The slide has forced the market to question the cryptocurrency’s reputation as a safe-haven digital Gold asset.
Now, traders are bracing for what one analyst warns could be an even larger shock. Gracy Chen, CEO of crypto exchange Bitget, highlighted a crucial threshold, stating “Key indicators we’re watching include bitcoin’s support levels around $50,000.”
This implies a potential 40% drop from current prices, which would erase roughly $1 trillion from the total crypto market capitalization. Currently, the market is focused on defending the $80,000 level for bitcoin.
Yuya Hasegawa, an analyst at Bitbank, cautioned “A break below the key $80,000 psychological level could accelerate selling pressure once again.” However, he noted that oversold conditions may attract buyers if prices fall further.
Meanwhile, the entire crypto market has fallen sharply alongside bitcoin. Alex Kuptsikevich, chief market analyst at FxPro, outlined a pessimistic scenario where the total market cap drops to between $1.8 trillion and $2 trillion.
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