Bitcoin took a heavy hit over the last couple of days, plunging to $74,000 and marking its lowest point since President Trump took office. This drop came after the cryptocurrency hovered near $100,000 just a week earlier, wiping out significant gains for holders.
The selloff liquidated over $110 billion from the crypto market’s total value in the past 24 hours. In a four hour span this weekend, more than $1.5 billion in levered positions, mostly longs, were liquidated according to CoinGlass.
Pressure built starting Thursday, escalating into a cascade of sales driven by algorithms. For context, this event echoes the October 10 “Black Friday” when $19 billion in crypto leverage vanished.
The catalyst appears tied to reports of Kevin Warsh’s impending nomination as Federal Reserve chair. Warsh, a former Fed governor known for advocating monetary discipline, has raised concerns among investors. His views on higher real rates and reduced liquidity position crypto as a speculative bubble rather than a safe haven, as noted by analysts. President Trump’s choice has strengthened the dollar and pressured risk assets, with Bitcoin failing to rally alongside gold’s recent highs or central bank liquidity injections.
This disconnect raises questions about hidden hands at play. With Trump pushing for a strategic Bitcoin reserve to bolster national finances, Warsh’s hawkish stance could serve as a tool for entrenched interests to derail those plans, keeping the dollar dominant and crypto in check. Such moves fit a pattern where policy shifts conveniently undermine alternatives to traditional banking.
MicroStrategy, a major Bitcoin accumulator, now faces scrutiny over its holdings. Strategy has acquired 2,932 BTC for ~$264.1 million at ~$90,061 per bitcoin. As of 1/25/2026, they hold 712,647 $BTC acquired for ~$54.19 billion at ~$76,037 per bitcoin. At current levels around $77,000—down from peaks but slightly recovered from the dip—the firm’s average cost leaves little room for further slides before forced sales become a risk.
As markets digest Warsh’s nomination—formally announced on January 30 and awaiting Senate confirmation—Bitcoin’s path remains volatile. While some see this as a buying opportunity, the broader economic signals point to caution in an environment where liquidity could tighten further.
It’s going to be a bumpy ride for Bitcoin holders going forward.
