Bitcoin Plummets Below $78,000 Amid Market Turmoil and Fed Chair Pick
By John Nada·Jan 31, 2026·2 min read
Bitcoin dipped below $78,000 as traders reacted to a market crisis and Trump's Fed chair announcement, signaling ongoing volatility for cryptocurrencies.
Bitcoin, Ethereum, and Solana faced significant declines as traders reacted to a turbulent market. Bitcoin, the largest cryptocurrency, dropped below $78,000, losing 7.6%. Ethereum fell approximately 11% to $2,382.57, while Solana sank 13% to $101.91.
This downturn follows President Donald Trump's announcement of Kevin Warsh as his choice for the next Federal Reserve chairman, which strengthened the U.S. dollar. The dollar's rise may diminish Bitcoin's allure as a viable alternative currency. If approved by the Senate, Warsh would succeed Jerome Powell, whose term ends in May. Trump's criticism of Powell has been notable, particularly regarding interest rates.
Retail investors are feeling the pinch, especially after a sharp selloff in spot silver, marking the worst day for the market since March 1980. Spot silver plummeted 28% to $83.45 an ounce, with silver futures sinking 31.4% to settle at $78.53. Such volatility in commodities only adds pressure to an already shaky crypto landscape.
The implications are clear: as traditional markets react to political decisions, cryptocurrencies like Bitcoin may struggle to maintain their value. Investors should brace for continued uncertainty as the market digests these developments. The intertwining of crypto and traditional finance is becoming increasingly evident, raising questions about the stability of both sectors.