Bitcoin drops below $70,000, hitting its lowest level since the current U.S. administration took office. The move signals a clear shift in crypto market sentiment.
Bitcoin fell 3.8% to $69,858. The report describes this as the weakest level since November 2024. That period followed the U.S. presidential election, during which Donald Trump signalled support for crypto.
The sell-off did not stop with Bitcoin. Ether also fell sharply this year, according to the report.
Ether has dropped nearly 30% so far this year. At the same time, Bitcoin has fallen by nearly 8% over the past week. Together, these moves show broad pressure across major cryptocurrencies.
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What triggered the latest dip
Analysts link the dip to a political and policy development. The report says President Trump announced he would appoint Kevin M. Warsh as the next Federal Reserve Chair.
Warsh would replace current Chair Jerome Powell. Powell’s term ends in May 2026. After the announcement, investors reassessed what the change could mean for interest rates and liquidity.
Bitcoin's selloff is deepening, with prices dipping below $70,000 for the first time since November 2024; a sharp reversal from the October 2025 record high near $126,273.
Analysts, quoted by Reuters, have tied the risk-off move to Kevin Warsh's nomination for Fed Chair,… pic.twitter.com/4MhC6bexPt
— Deriv.com (@Derivdotcom) February 5, 2026Why the Fed matters for crypto
Monetary policy often shapes demand for risk assets. Cryptocurrencies typically perform better when financial conditions are looser.
The report says the Fed is expected to cut interest rates and shrink its balance sheet. However, the report also notes that crypto markets often benefit from looser policy and larger Fed balance sheets. That contrast appears to be driving uncertainty.
Manuel Villegas Franceschi from Julius Baer explained the concern in plain terms. He said the market fears Warsh may take a hawkish stance. He also warned that a smaller balance sheet would not support crypto prices.
Bitcoin price drops below $70,000
The largest digital asset by market capitalization is now at its lowest level since November 2024 pic.twitter.com/QKiD7Cqv1i
— RT (@RT_com) February 5, 2026Losses build across the market
The decline has also erased a large amount of market value, according to the report. Bitcoin’s recent slide has wiped out nearly $1.9 trillion in value since October 2025.
The report adds that more than $800 billion was wiped out last month alone. These figures highlight how quickly sentiment can change in crypto markets when traders react to policy signals.
Investors now focus on expectations around rates and the Fed’s balance sheet. Those signals can drive risk appetite and influence crypto pricing.
For now, the report frames the move as a reaction to uncertainty. As markets price in future policy direction, Bitcoin and Ether could remain volatile.
