Altcoins News
By Steven Anderson
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Bitcoin took a beating Sunday. The cryptocurrency plunged below $80,000 for the first time in weeks after Kevin Warsh got tapped as the new Federal Reserve Chair, sparking…
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The market didn't waste time reacting to the news. Automated trading systems kicked in hard, unwinding leveraged positions at breakneck speed and piling on the selling pressure.
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Warsh isn't exactly crypto's best friend.
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The former Fed governor has made his skepticism about digital currencies pretty clear over the years.
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Warsh replaces Jerome Powell, who's been running the Fed since 2018. Powell's tenure saw some wild swings in monetary policy, including the massive money printing during COVID…
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The carnage wasn't limited to Bitcoin. Ethereum dropped nearly 8% within hours of the announcement, falling below $2,800 for the first time since January.
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Bitcoin had been riding high after surging past a $1.5 trillion market cap just last week. Institutional money kept flowing in, with BlackRock's Bitcoin ETF seeing record inflows.
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JP Morgan analysts jumped on the story fast. They published a note Sunday evening pointing out Warsh's track record of pushing for stricter oversight of financial innovations.
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The Federal Reserve hasn't said much yet about specific policy changes. That's got investors on edge, waiting for any hint about Warsh's plans.
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International markets are watching too. The European Central Bank put out a statement Monday saying they're monitoring the situation closely.
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Goldman Sachs tried to calm nerves with a research note Tuesday. Their analysts think the market's reaction might be overdone in the short term.
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The CFTC is staying quiet for now. A commission official, speaking anonymously, said they're evaluating how Warsh's leadership might affect futures markets, including Bitcoin…
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Warsh will officially take over in the coming weeks. His first major policy decision is what everyone's waiting for. Will he crack down on crypto lending?
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Some context helps here. Similar crashes happened in 2021 when China banned crypto mining and trading. Bitcoin fell from $65,000 to below $30,000 in a matter of months.
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The crypto industry is holding its breath for Warsh's inaugural address. Any hints about regulatory changes could send Bitcoin in either direction.
The Currency Analytics
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