Bitcoin is currently weathering its most punishing selloff in nearly a year, sliding below the critical $80,000 mark for the first time since April 2025. Over the weekend, the flagship cryptocurrency bottomed out near $75,600 before staging a modest recovery to the $78,500 range.
The pain wasn’t limited to Bitcoin; Ethereum and Solana both saw double-digit percentage drops as more than $1.6 billion in leveraged bets were wiped out in a massive “deleveraging event” that caught many traders off guard.
The primary trigger for the panic appears to be the nomination of Kevin Warsh to lead the Federal Reserve. Known for favoring a leaner Fed balance sheet and tighter monetary control, Warsh’s potential leadership has breathed new life into the U.S. dollar but soured the mood for “risk-on” assets like crypto.
READ: Bitcoin Sell-Off: Retail and “Super Whales” Exit, Flock to SitonMining
This policy shift, occurring alongside a sudden crash in gold and silver prices, has forced investors to rethink the “inflation hedge” narrative that kept Bitcoin near six figures for much of late 2025.
Compounding the market’s nerves are mounting geopolitical tensions in the Middle East and the fallout from a brief U.S. government shutdown. These factors have pushed the “Fear & Greed Index” into the “Extreme Fear” zone, its lowest point in months.
While on-chain data suggests that some long-term “whales” are using this dip to accumulate more coins, institutional interest in Bitcoin ETFs has cooled significantly, with outflows topping $1.5 billion this past week.
READ: Trump’s Tariffs: Boosting Or Hurting XRP Price? Siton Mining Draws Attention
For now, the market is searching for a floor, with analysts keeping a close eye on the $74,500 support level to see if the bleeding will finally stop.
Disclosure: Neither Tampa Free Press nor the author of this article endorses any product mentioned on this page. Users should conduct their own research before taking any action related to the company. This article is not intended as financial advice. Educational purposes only.
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