Bitcoin dips below $79,000 after silver selloff

Bitcoin, Ethereum, and Solana experienced a decline as retail traders analyzed a volatile market week marked by fluctuations in commodities and President Donald Trump’s announcement of his pick for the next Federal Reserve chairman.

By the end of Saturday’s trading session, bitcoin, the largest cryptocurrency by market value, dropped below $79,000, a 6.1% decrease. Ethereum saw a 9% slide to $2,445.31, while Solana lost 9.9% at $105.50.

The downturn in the crypto market followed Trump’s nomination of Kevin Warsh to lead the Fed, leading to a stronger U.S. dollar and easing concerns about the central bank’s autonomy. This increase in dollar strength could diminish bitcoin’s attractiveness as an alternative currency to investors.

If confirmed by the U.S. Senate, Warsh would take over from current Chairman Jerome Powell, whose term ends in May. Trump has been critical of Powell, particularly regarding his reluctance to lower interest rates, ever since Powell assumed the position in 2018.

The decline in the crypto market adds to the challenges faced by retail investors, who also witnessed a significant drop in spot silver prices on Friday, marking the worst day for the market since March 1980.

Spot silver tumbled 28% to $83.45 per ounce, trading close to its daily lows. Silver futures also plummeted by 31.4% to settle at $78.53.