Bitcoin hovered near $84,000 as markets reacted to Kevin Warsh’s nomination as US Federal Reserve Chair. While short-term volatility persists amid ETF outflows and macro uncertainty, reduced leverage and oversold conditions may support a near-term rebound across major cryptocurrencies if sentiment stabilises.
Bitcoin is hovering near $84,000, up from its two-month low level of $82,000 seen on Friday, as markets reacted to President Donald Trump nominating Kevin Warsh as the next US Federal Reserve Chair.
In the past 24 hours, Bitcoin rose by 1.63%, while Ethereum fell by 0.86% to trade at the $2,687 level. In the same period, among major altcoins, BNB, Solana, Tron, Dogecoin and Hyperliquid rose by over 7%, while XRP and Cardano declined by 0.69% and 3.03%, respectively.
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The global crypto market capitalisation rose 0.89% to $2.83 trillion, according to CoinMarketCap.
Nischal Shetty, Founder, WazirX, said markets reacted to uncertainty around upcoming interest rate decisions and the independence of the Fed. As a result, the US dollar strengthened slightly, while risk assets came under mild pressure.
After a strong run-up this month, the crypto market is taking time to consolidate as the impact of macro developments settles at a calibrated pace, Shetty added.
Over the past week, Bitcoin and Ethereum declined by 6.59% and 9.13%, respectively. Among major altcoins, BNB, XRP, Solana, Tron, Dogecoin and Cardano fell by over 13%, while Hyperliquid rose by 34.73%.
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Riya Sehgal, Research Analyst, Delta Exchange, said over $2.7 billion has exited US spot Bitcoin ETFs since mid-January, raising concerns about weakening institutional demand. Gold’s recent rally and pullback diverted liquidity from digital assets, adding to risk-off pressure. Bitcoin options show the highest fear levels in a year, with a 17% delta skew as traders hedge downside risk.
Overall, the crypto market reflects caution after heavy liquidations, but reduced leverage and oversold positioning could support a short-term rebound if conditions stabilise, Sehgal added.
