[Bitcoin Now] Bitcoin Falls Below $80,000 on Kevin Warsh Nomination

The price of Bitcoin has fallen below $80,000. This is believed to be due to U.S. President Donald Trump nominating Kevin Warsh as the next Federal Reserve (Fed) Chair. Warsh previously showed a hawkish (preference for monetary tightening) stance when he served as a Fed governor, which has lowered expectations for an early interest rate cut and is negatively affecting the virtual asset market.

According to global virtual asset market tracker CoinMarketCap, as of 9:30 a.m. on February 2, Bitcoin was trading at $77,866.73, down 1.45% from 24 hours earlier. Other major virtual assets, including Ethereum, BNB, Ripple (XRP), and Solana, also recorded declines of 2% to 5%.

After reaching $84,128.66 on January 30, Bitcoin dropped to $78,621.11 on January 31. The previous day, it fell further to $76,974.44. This is the first time since April last year that Bitcoin has fallen below $80,000. At that time, the price also dropped after President Trump announced reciprocal tariff rates by country.

The recent sharp decline appears to be largely due to increased market uncertainty following Warsh's nomination as the next Fed Chair. Warsh is known for his strong hawkish stance, having previously expressed serious concerns about quantitative easing (QE) during his tenure as a Fed governor.

Typically, Bitcoin and other virtual assets benefit from periods when the Fed supplies large amounts of liquidity. When the Fed provides liquidity to the market and facilitates capital flows, Bitcoin's price tends to rise. This acts as a factor supporting speculative assets overall.

CNBC reported that the decline in virtual asset prices was influenced by the strengthening of the U.S. dollar, as concerns over central bank independence eased somewhat following Warsh's nomination as a Fed Chair candidate. A stronger dollar can weaken Bitcoin's appeal as an alternative currency.

Meanwhile, foreign media outlets point out that Bitcoin is gradually moving away from its perception as "digital gold." Bitcoin has often been cited as a safe-haven asset like gold or silver. However, as it continued to decline even amid heightened geopolitical tensions-such as the Greenland controversy sparked by President Trump-questions are being raised about this perception.

Ilan Solot, Global Markets Strategist at financial services platform Marex Solutions, told the Financial Times (FT) that Bitcoin is "an asset for which a clear valuation model has yet to be found," adding that there is no clear consensus on what should determine its price.

Supply and demand instability, such as outflows from Bitcoin exchange-traded funds (ETFs), is also fueling the decline in virtual asset prices. The 12 spot Bitcoin ETFs listed in the U.S. market have recorded net asset outflows for three consecutive months. The amount withdrawn during this period totals approximately $5.7 billion. The Wall Street Journal (WSJ) recently described the current virtual asset market atmosphere as "survival is the goal."

There are also forecasts that the downward trend may continue. Rising tensions in the Middle East could negatively impact Bitcoin. As military tensions between the U.S. and Iran escalate, Iran has warned that it could retaliate against Israel and other allied countries if the U.S. takes military action.

John Todaro, an analyst at U.S. investment bank Needham, told Bloomberg, "Current indicators show that individual investors' interest has been extremely dampened," adding, "The trend of declining trading volume could continue for another one or two quarters."