Bitcoin Faces Mounting Pressure Amid Policy Shifts

The new trading week opened with significant headwinds for Bitcoin, as external macroeconomic and political developments overshadowed crypto-specific news. A key trigger was the nomination of Kevin Warsh to potentially lead the U.S. Federal Reserve, a move that prompted a broad “risk-off” sentiment across financial markets. This reaction has been particularly acute for speculative assets like Bitcoin, highlighting their sensitivity to shifts in traditional finance.

Hawkish Fed Speculation Drives Sell-Off

Market participants are interpreting Warsh’s potential appointment as a hawkish signal, according to reports. He is viewed as an advocate for aggressive inflation control and greater discipline regarding the central bank’s balance sheet. This perception has stoked concerns about tighter financial conditions ahead, which typically reduces the liquidity that supports higher-risk investments.

Trading activity over the weekend amplified this nervousness. In thinner market conditions, Bitcoin slid below the psychologically significant $80,000 threshold. As of today, the price has touched a 52-week low, trading at $76,638.

Leveraged Positions Unwind in a Cascade

A second, market-internal driver then accelerated the downward move. As key support levels failed, a wave of forced liquidations for leveraged positions ensued. Data from Coinglass shows these liquidations totaled approximately $1.6 billion. This created a domino effect: forced sales drove the price lower, triggering additional stop-losses and further liquidations, thereby increasing the velocity of the decline.

The broader digital asset market felt the impact. According to CoinGecko, around $111 billion in total cryptocurrency market capitalization was erased within a 24-hour period.

Should investors sell immediately? Or is it worth buying Bitcoin?

Key Data Points:
* Warsh nomination triggers “risk-off” move for speculative assets.
* Forced liquidations of roughly $1.6 billion intensify selling pressure.
* Crypto market cap declines by approximately $111 billion in 24 hours.
* Spot Bitcoin ETFs record a slight net outflow of about -$32 million year-to-date in 2026.

Institutional ETF Demand Shows Early-Year Caution

The institutional flow data presents an interesting narrative. While spot Bitcoin ETFs collectively attracted around $35 billion in net inflows over the previous two years, the trend for 2026 has so far reversed slightly into negative territory. AInvest reports net outflows of about $32 million since the start of the year.

While not a dramatic sum, this shift is a notable signal. Major investors appear to be tapping the brakes, likely awaiting greater clarity on the potential monetary policy direction of a Warsh-led Federal Reserve.

The immediate focus for traders now centers on two key levels and events. The $75,000 zone is widely seen as a major support area; a sustained break below this level could open the path toward $70,000. Concurrently, upcoming congressional hearings and policy statements from Warsh, coupled with daily ETF flow data, are expected to set the tone for trading in the coming days.