Bitcoin’s sharp drop after Kevin Warsh’s Fed Chair confirmation saw $2.5B in liquidations before stabilizing near a mid-cycle support zone analysts consider a potential floor.
Bitcoin dropped from above $80,000 to $74,500 over the weekend following Kevin Warsh’s confirmation as the next U.S. Federal Reserve chair, fueling expectations of monetary tightening. The decline triggered $2.5 billion in leveraged long liquidations and coincided with ETF outflows and heightened risk-off sentiment. Analysts note Bitcoin has since steadied near a mid-cycle support area that could mark a potential cycle floor if the $74,000 level holds.