Bitcoin Drops Below $79,000 Amid Volatility Across Assets After Trump's Fed Decision

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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.

Why it matters

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.

The details

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. If confirmed by the U.S. Senate, Warsh would replace sitting Chairman Jerome Powell, 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.

• Bitcoin, Ethereum, and Solana tumbled on late trading Saturday.