Bitcoin’s price experienced a dramatic decline late Thursday evening, plummeting to as low as $81,000 before recovering slightly to around $82,000. This latest downturn marks a staggering loss of nearly $10,000 in just 24 hours of trading. Liquidation figures released by CoinGlass reveal more than $777 million in long positions were unwound within a mere hour, contributing to a total liquidation of approximately $1.75 billion over the entire day.
The impact of Bitcoin’s drop rippled through the larger cryptocurrency market, where prices of various digital assets fell between 7% and 9%. Notably, Ethereum (ETH) lingered around $2,700, Binance Coin (BNB) hovered close to $843, and XRP traded at about $1.74. Analysts at CoinDesk indicated that if Bitcoin’s price were to slide below the $85,000 mark, it could trigger further declines.
Currently, Bitcoin’s value is precariously positioned just above its November low of slightly under $81,000, with potential support anticipated at the April 2025 low of $75,000 if the current threshold fails to hold.
Market sentiment appears to be influenced by political developments, particularly the looming announcement from U.S. President Donald Trump regarding his nominee to replace current Federal Reserve Chair Jerome Powell. Trump has signaled his intention to unveil the nomination on Friday morning, following critical remarks about Powell and the Federal Reserve’s interest rate policies. As a result, the odds on Polymarket for former Federal Reserve Board member Kevin Warsh taking over the Fed Chair position surged to 87%, a significant rise from just 37% earlier in the day.
Prior to the emergence of Warsh as a favored candidate, there were speculations surrounding BlackRock’s fixed-income chief, Rick Rieder, who was seen by some as a potentially dovish choice for the role. Reports indicate Warsh visited the White House on Thursday, fueling further speculation about his potential nomination.
