Bitcoin, Ethereum, and Solana tumbled as the retail traders digested an active week in the market that saw wild swings in commodities and a long-awaited announcement by President Donald Trump on his decision on the next Federal Reserve chairman.
Bitcoin, the largest cryptocurrency in the world in terms of market value, dropped to under $79,000 on late trading Saturday, a 6.1 percent drop. Ether plummeted nearly 9 percent to $2,445.31, and Solana dropped almost 10 percent to $105.50.
The downward trend in crypto follows the appointment of Kevin Warsh to head the Fed, which strengthened the U.S. dollar as it assuaged fears regarding the independence of the central bank.
However, the strength of the dollar will also make bitcoin less attractive to investors as an alternative currency. If confirmed by the U.S. Senate, Warsh would replace sitting Chairman Jerome Powell.
Powell is currently serving as chair, whose term expires in May. Trump has mostly criticized Powell, especially regarding his reluctance to cut interest rates, almost since the Fed chairman assumed office in 2018.
Therefore, the crypto debacle is the most recent shock to retail investors who were whipped about by a precipitous spot silver sell-off on Friday, the worst market day ever seen since March 1980.
Thus, Spot silver fell 28 percent to $83.45 an ounce, and was close to its lowest point of the day. Silver futures plunge 31.4 percent to settle at $78.53.
