Currencies January 31, 2026

Bitcoin Slides Below $80,000 as Ether Drops Sharply; Dollar Firm on Fed Chair Pick

Cryptocurrencies lose ground amid dollar strength after Kevin Warsh named as next Fed chair, with bitcoin down over 6% and ether off nearly 12%

By Caleb Monroe
Bitcoin Slides Below $80,000 as Ether Drops Sharply; Dollar Firm on Fed Chair Pick

Bitcoin declined more than 6% to under $79,000 on Saturday as the U.S. dollar strengthened following the selection of Kevin Warsh as the next Federal Reserve chair. Ether fell almost 12% as cryptocurrencies remain directionless after a broad pullback last year, while gold and stocks have staged stronger rallies.

Key Points

  • Bitcoin fell 6.53% to $78,719.63 and reached $81,104 on Friday, its lowest since November 21 - impacts cryptocurrency markets and investor portfolios.
  • Ether dropped 11.76% to $2,387.77, reflecting broader directional struggles across cryptocurrencies that have lagged behind rallies in gold and equities - impacts crypto and precious metals and equity comparisons.
  • The U.S. dollar strengthened after Kevin Warsh was selected as the next Federal Reserve chair, raising concerns about tighter cash conditions in the financial system - impacts monetary policy expectations and liquidity-sensitive markets.

Bitcoin, the largest cryptocurrency by market capitalization, traded lower on Saturday, falling 6.53% to $78,719.63 as of 12:48 p.m. ET (1748 GMT). Earlier on Friday, bitcoin dipped to $81,104, its weakest level since November 21. The slide in the digital asset coincided with a firmer U.S. dollar after former Federal Reserve Governor Kevin Warsh was named as the next Fed chair, a development that has raised concerns about potential tightening of cash available in the financial system.

Ether also moved sharply lower, down 11.76% to $2,387.77 on Saturday afternoon. The broader cryptocurrency complex has struggled for clear direction since the sizable decline experienced last year. Market participants have noted that cryptocurrencies have lagged behind strong rallies in both gold and equities despite expectations that the period following the recent political transition might bring increased flows and more favorable regulation for digital assets.

Bitcoin has shed roughly one third of its value since reaching record highs in October, according to available market comparisons. This contraction contrasts with notable gains in other asset classes, leaving crypto investors contending with heightened volatility and underperformance relative to some alternative investments.


Promotional performance claims: Year to date, two out of three global portfolios in a proprietary selection program are outperforming their benchmark indexes, with 88% of portfolios showing gains. The flagship Tech Titans strategy reportedly doubled the S&P 500 within 18 months, including substantial winners such as Super Micro Computer (+185%) and AppLovin (+157%).


The market reaction on Friday and into Saturday highlights the sensitivity of cryptocurrencies to shifts in macroeconomic expectations, particularly those tied to U.S. monetary policy and dollar strength. Traders and investors are monitoring developments closely as the selection of the next Fed chair introduces uncertainty about future liquidity conditions.

Overall, the moves on Saturday underscore ongoing challenges for the crypto market as it attempts to regain momentum after last year’s setback, while other assets such as gold and stocks have outpaced digital tokens in recent rallies.

Risks

  • Potential tightening of cash in the financial system if the new Fed chair pursues tighter policy, which could weigh on cryptocurrencies and other risk assets - affects crypto markets and broader financial markets.
  • Continued lack of clear direction in the cryptocurrency market following last year’s tumble, increasing the risk of further declines or volatility for investors in digital assets - affects crypto investors and related trading activity.
  • Relative underperformance of cryptocurrencies compared with rallies in gold and stocks could discourage flows into digital assets, prolonging the sector’s recovery - impacts crypto capital flows and investor allocation decisions.

More from Currencies

Dollar Extends Post-Nomination Rally as Markets Weigh Fed Direction Feb 2, 2026 UBS Urges Caution as Dollar’s Slide Meets Political Headwinds and Mixed Economics Jan 30, 2026 Morgan Stanley Sees EUR/USD Reaching 1.23 in Q2 2026 as Dollar Faces Unconventional Pressure Jan 30, 2026 Japan’s Yen Support Limited to Warnings, MoF Records Show Jan 30, 2026 Dollar Edges Up as Warsh Speculation Lifts Sentiment; Weekly Decline Persists Jan 30, 2026