Bitcoin price crash 2026 — The cryptocurrency market is reeling this Monday morning as Bitcoin (BTC) plummeted below the critical $75,000 support level, marking a fresh 10-month low. The massive sell-off follows President Trump’s formal nomination of Kevin Warsh as the next Chairman of the Federal Reserve, a move that has rattled investors fearing a return to aggressive monetary tightening. As panic spread through global exchanges, BTC liquidations today topped $1.6 billion, wiping out leveraged positions in one of the most severe market corrections of the year.
Kevin Warsh Fed Nomination Crypto Impact: Why Markets Are Panicking
The catalyst for the sudden downturn was the Friday announcement nominating former Fed Governor Kevin Warsh to replace Jerome Powell. While Warsh has previously described Bitcoin as a "sustainable store of value like gold," his reputation as a monetary "hawk" is weighing heavily on risk assets. Investors are interpreting his nomination as a signal for higher real interest rates and a shrinking Federal Reserve balance sheet—conditions that historically drain liquidity from speculative markets.
Unlike the "easy money" era that fueled previous rallies, a Warsh-led Fed is expected to prioritize fighting inflation over stimulating asset prices. "The market is pricing in a liquidity crunch," noted a senior analyst at a major crypto hedge fund. "Warsh has a history of criticizing the very quantitative easing policies that buoyed crypto assets. The Fed Chair nomination impact on Bitcoin is immediate and bearish in the short term."
Crypto Market Crash News: Billions Evaporate in Hours
The reaction was swift and brutal. Over the weekend, Bitcoin shed nearly 12% of its value, cascading through key technical supports at $82,000 and $78,000 before crashing through the psychological $75,000 barrier. This level had served as a strong floor for the past ten months, and its breach triggered a cascade of forced selling.
Ethereum Price Drop February 2026
The carnage wasn't limited to Bitcoin. Ethereum price drop February 2026 data shows the second-largest cryptocurrency sliding over 10% to trade near $2,300, a level not seen since mid-2025. Altcoins suffered even steeper losses, with high-beta tokens like Solana and Avalanche posting double-digit declines as traders fled to the safety of the U.S. dollar and short-term Treasuries.
Bitcoin ETF Outflows Today Signal Institutional Caution
Adding to the bearish momentum, preliminary data indicates record-breaking Bitcoin ETF outflows today. Institutional investors appear to be de-risking their portfolios in anticipation of a tighter monetary environment. The swift reversal in sentiment highlights how sensitive the crypto market remains to macroeconomic shifts, particularly those emanating from the Federal Reserve.
While some contrarian investors see this crypto market crash news as a buying opportunity, technical indicators suggest the dust has not yet settled. The Relative Strength Index (RSI) on the daily chart has plunged into oversold territory, but with the $75,000 support broken, bears are now eyeing the $70,000 - $72,000 range as the next potential floor.
What’s Next for Bitcoin?
As the Senate confirmation hearings for Kevin Warsh approach, volatility is expected to remain high. Traders will be scrutinizing his every word for clues on his policy direction. If Warsh adopts a more pragmatic tone regarding digital assets and innovation, the market could stabilize. However, if he doubles down on his historical hawkishness, the Bitcoin price crash 2026 could deepen further before finding a bottom.
For now, caution is the watchword. With BTC liquidations today serving as a painful reminder of the risks of leverage, market participants are bracing for a turbulent week ahead as Wall Street digests the full implications of a new era at the Federal Reserve.
