Bitcoin has experienced a significant decline, falling below the $80,000 mark for the first time since April 2025. The cryptocurrency dropped approximately 6.5% to reach $78,719, driven in part by a stronger U.S. dollar following Donald Trump’s appointment of Kevin Warsh to lead the Federal Reserve. Ether also suffered, plummeting nearly 12% to around $2,388. Brian Jacobsen of Annex Wealth Management noted that such price adjustments can create a self-reinforcing cycle, suggesting that additional selling pressure could be on the horizon.
The recent downturn in Bitcoin has erased over 30% of its value, revealing a stark contrast from previous market conditions that favored cryptocurrencies, such as a weaker dollar and record highs in gold prices. Recent delays in U.S. regulatory frameworks for crypto trading may have dampened investor enthusiasm, further complicating the landscape for cryptocurrencies.
Retail traders have faced a turbulent week in commodities, experiencing a notable reversal in silver prices. In Saturday afternoon trading, Bitcoin slipped further, dipping below $78,000, while other cryptocurrencies, including Ether and Solana, also faltered, losing approximately 11% and 13%, respectively. The CNBC report highlighted the impact of Warsh’s appointment on the strengthening dollar, which generally diminishes Bitcoin’s attractiveness as an alternative currency.
A major factor in the selloff was the surge in leveraged positions. Coinglass reported that liquidations, or forced closures of futures positions due to insufficient margin or collateral, exceeded $1.6 billion within a 24-hour window. Furthermore, nearly $1.5 billion was withdrawn from U.S. Bitcoin exchange-traded funds this week, with firms like BlackRock, Fidelity Investments, and Grayscale Investments among those affected.
The decline in cryptocurrencies tracked a dramatic reversal in precious metals markets, where spot gold fell 9.5% and silver plunged nearly 28% after reaching record highs just a day prior. Analysts attributed these fluctuations to profit-taking driven by the stronger dollar, with Suki Cooper from Standard Chartered Bank remarking that the market was due for correction. Nicky Shiels from MKS PAMP SA described January as an extraordinarily volatile month for precious metals.
According to CoinGecko, the broader cryptocurrency market lost around $111 billion in value over the last 24 hours, with liquidations during that time also hitting $1.6 billion. Louis Navellier of Navellier & Associates pointed out that silver and gold have become the go-to options for investors concerned about fiat currencies, while John Todaro from Needham & Company noted an evident “extreme disinterest” among retail investors.
The $80,000 threshold has emerged as a significant psychological barrier, leading some analysts to suggest that the recent selloff indicates a general risk aversion rather than any fundamental flaws within the cryptocurrency market. Linh Tran from XS.com observed that Bitcoin’s price drop does not undermine its underlying fundamentals, and with Warsh known for his positive stance on Bitcoin, the possibility remains that market sentiment could shift if the dollar weakens or buying activity resumes.
In other financial news, changes are occurring in Berkshire Hathaway’s investment portfolio. Recent reports indicate that American Express is nearing the position of Berkshire’s largest listed-stock holding, closing in on Apple. The gap between the two companies shrank to $4.3 billion last Friday but widened to $8.4 billion this week. Berkshire has reduced its holdings in Apple by about 75%, while American Express has posted a staggering 106% gain over the last two and a half years, compared to Apple’s 35% gain. Following share buybacks, Berkshire now owns approximately 22% of American Express’s stock.
