Bitcoin slipped below $79,000 in late Saturday trading, marking a sharp 6.1% decline as markets digested a turbulent week of economic developments and commodity volatility. Ethereum fell roughly 9% to $2,445.31, while Solana dropped 9.9% to $105.50, reflecting broad weakness across major cryptocurrencies. The selloff coincided with a dramatic plunge in silver, which saw its worst day since March 1980, with spot prices down 28% to $83.45 an ounce and futures plummeting 31.4% to $78.53.
The cryptocurrency decline was intensified by President Donald Trump’s announcement of Kevin Warsh as his nominee for Federal Reserve chairman. Warsh’s selection, if confirmed by the U.S. Senate, could replace Jerome Powell, whose term ends in May. Market observers note that Warsh’s perceived alignment with traditional dollar-strengthening policies fueled a rally in the U.S. dollar, reducing bitcoin’s appeal as an alternative currency. For investors, this signals a potential shift in sentiment, as a stronger dollar historically coincides with softer demand for digital assets.
Retail traders faced the compounded impact of volatile commodities and crypto losses. The silver market shock in particular amplified risk aversion, as sudden commodity swings often ripple into digital assets. Experts suggest that the combination of policy uncertainty and dollar appreciation may keep cryptocurrencies under pressure in the short term. Analysts point out that bitcoin’s recent retreat also tests technical support levels near $78,000, highlighting potential volatility ahead for both seasoned and new investors.
Looking forward, the market will closely watch Senate confirmation proceedings and any early policy signals from Warsh. For the crypto sector, the interplay between macroeconomic forces, dollar strength, and investor sentiment will likely shape price action in the coming weeks. While digital assets remain a long-term hedge for many, short-term volatility appears set to remain elevated as global markets absorb both political and commodity-driven shocks.
