Bitcoin continues to plunge in value months after record crash
Bitcoin continues its difficult start to 2026
- Bitcoin is nearing a fall below the $70,000 mark reaching its lowest level since November 2024.
- The sharp decline in cryptocurrencies is linked to the nomination of Kevin Warsh as Federal Reserve Chair, raising concerns that he will shrink the Fed's balance sheet.
- Bitcoin has lost over 7 per cent this week and nearly 20 per cent year-to-date, while Ether has seen a nearly 30 per cent drop this year.
- Cryptocurrencies historically benefit from expansive central bank balance sheets, and the prospect of a smaller balance sheet is seen as a negative catalyst.
- Analysts attribute the broader market decline to substantial withdrawals from institutional ETFs, indicating a growing disinterest among traditional investors.
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