Bitcoin (BTC) continued to trade weakly on the 2nd, following sharp losses over the weekend.At the time of writing, Bitcoin had fallen below the key USD 80,000 level and was trading around USD 77,000 (approximately JPY 11.95 million). This price range mirrors levels last seen around April of the previous year, when risk-off sentiment intensified amid concerns over so-called “Trump tariffs.”
Major altcoins also posted significant declines, with Ethereum (ETH) in particular recording a weekly loss of more than 20%.
The primary catalyst behind the sell-off was the announcement of President Donald Trump’s nominee for the next Chair of the Federal Reserve. Trump named former Fed Governor Kevin Warsh as his choice, expressing confidence in Warsh’s ability to accelerate interest rate cuts.
However, Warsh is widely regarded as a hawk who has been critical of the Fed’s past easing policies and is generally seen as skeptical of aggressive monetary accommodation. While Trump emphasized that Warsh would be open to rate cuts, markets reacted nervously to the unexpected nomination, triggering heightened volatility.
The impact was particularly pronounced in the precious metals market. Investors had largely positioned for the appointment of a more dovish Fed chair, and gold—already perceived as overextended—fell by more than 10%, marking its steepest decline in 46 years.
Silver, which had also surged sharply in recent months, at one point plunged by as much as 35%. These moves are believed to reflect concerns over a stronger U.S. dollar, given Warsh’s historically hawkish stance.
Some of the capital flowing out of precious metals temporarily moved into Bitcoin and other crypto assets. However, continued caution surrounding Warsh’s policy outlook soon prevailed, and selling pressure resumed. With liquidity thinning over the weekend, risk-off sentiment intensified further, driving Bitcoin lower.
