Bitcoin Drops Below $80,000 After Warsh Is Appointed Fed Chair And Spends $2.5 Billion: Expert

decrease Bitcoin Below the $80,000 level that was closely watched over the weekend after the markets confirmed that Kevin Warsh is the next Chairman of the Federal Reserve, which caused volatility in the cryptocurrency markets, according to QCP Asia analysts.

In a market report released on MondayQCP reported that Bitcoin briefly fell to around $74,500 after breaching key technical support, while Ether fell below $2,170.

The decline led to the liquidation of more than $2.5 billion of long positions, adding to the stress at a time when sentiment was already weak due to the outflow of US Bitcoin.

The appointment of Warsh to head the Federal Reserve caused a wave of panic in the markets

The risk following the announcement of Warsh’s appointment continued in the cryptocurrency market. Stocks weakened and futures such as gold and silver retreated from recent highs, as traders reassessed the direction Warsh’s administration might take at the Fed.

Markets have started to raise prices at a higher risk of default or less favorable conditions, based on unproductive assets.

Higher demand in futures markets has also contributed to the unwinding of distressed positions, according to QCP.

Bitcoin has settled above $74,500, an area that corresponds to the decline of its movement seen in 2025. The options market continues to show caution, and the place is still leaning towards the protection of the bottom, although the need for hedging has decreased compared to previous events.

QCP noted that during November’s drop from $107,000 to $80,500, the hedging activity was more aggressive than it is now near $70,000, meaning that some exposure has already ended.

QCP: BTC fell below $80,000 after Kevin Warsh was confirmed as the next Fed Chairman, which led to a major shutdown. BTC briefly touched $74,500, ETH dropped below $2,170, and more than $2.5 billion of long positions were liquidated, with $74,000 and $80,000 as key watch levels…

– Wu Blockchain (@WuBlockchain) February 2, 2026

However, experts warned that price action remains vulnerable to risks. Momentum indicators are still pointing lower and the upside appears to be limited near recent resistance, leaving the market vulnerable to further moves leading to a close if support fails.

A sustained break below $74,000 could open the door to a return to the trend last seen in 2024, while an assured return to $80,000 would help reduce volatility and stabilize sentiment.

“In the current environment, the focus should be on whether the increase in the institutions will resume, especially because of the cost of the Strategy close to $ 76,000, and the reduction of any political risks, especially related to Iran,” said the QCP.

“The Fed’s approach will be closely watched, as any word from Chairman-elect Warsh raising expectations for tightening could be encouraging,” the analyst said.

Bitcoin’s drop to $77,000 sparked discussions of a bearish session

The fall of Bitcoin at the end of the week to $ 77,000 may represent a low level, according to the analyst of PlanC, who said that the move has signs of less capitulation than the beginning of a long period.

Bitcoin briefly touched that level before stabilizing and heading towards $78,600, although it is still down 11% for the month and more than 38% below its October peak near $126,100.

PlanC compared the recent downturn to previous downturns that began major recoveries, including the 2018 bear market low, the March 2020 Covid low, and the massive decline that followed the collapse of FTX and Terra-Luna.

He added that the current low is between $75,000 and $80,000, stressing that the move could represent the final resolution within the ongoing bull.

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