Bitcoin slides near $78,800 amid Fed leadership change and geopolitical tensions

Bitcoin hovers around the $78,800 level, down by 6.04% in the past 24 hours, as the crypto market remains under pressure due to the Fed leadership change, geopolitical and macroeconomic developments keep investors cautious. The cryptocurrency was trading at $78,833.

On Friday, Bitcoin fell to as low as $81,104, the lowest since November 21, 2025, while the U.S. ‌ dollar gained after ‌former Federal Reserve Governor Kevin Warsh was selected as the next Fed chair.

Also Read | Gold ETFs crash 16% on stronger dollar, silver ETFs follow suit. What should investors do?

Ethereum slipped 9.21% in the past 24 hours to trade at the level of $2,449. Among the major altcoins, BNB, XRP, Solana, Tron, Dogecoin, Cardano, and Hyperliquid fell upto 11% in the past 24 hours. The global crypto market capitalisation edged down 5.69% to $2.67 trillion, according to CoinMarketCap.

Akshat Siddhant, Lead Quant Analyst, Mudrex, said sentiment weakened after Kevin Warsh was named the next Fed Chair, a move markets see as less supportive for risk assets and geopolitical events, including reports of an explosion at Iran’s Bandar Abbas port and a brief U.S. government shutdown, which further added to the risk-off tone.

Looking ahead, the $74,500 level is a key area to watch for a potential base, with fresh liquidity likely to drive the next meaningful move, Siddhant added.

In the past week, Ethereum and Bitcoin fell upto 16.74% and 11.23% respectively. Among the major altcoins, BNB, XRP, Solana, Tron, Dogecoin, and Cardano fell upto 17%, whereas Hyperliquid went up by 39.81%.

Nischal Shetty, Founder, WazirX, said Bitcoin and Ethereum have sold off sharply over the last 48 hours as global risk sentiment has deteriorated. Bitcoin slipped below the $80,000 threshold after failing to hold above $89,000, with the decline amplified by thin weekend liquidity.

“The decline coincides with a renewed escalation in geopolitical tensions, particularly intensified conflict between the United States and Iran.”

Also Read | 16 equity mutual funds deliver over 20% return since last budget. Do you own any in your portfolio?

Overall, near-term crypto price movements continue to be closely linked to shifts in global risk appetite and geopolitical developments. In the absence of clearer signals on either front, volatility is likely to remain elevated, with markets reacting sharply to headline developments,” Shetty said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)