Crypto markets have seen a sharp decline in the past 24 hours, with Bitcoin and most altcoins under heavy selling pressure. Bitcoin fell to around $85,100 before recording a small recovery.
No clear dominant factor was identified, but market sentiment was seen to be affected by changing expectations for the appointment of the new US Federal Reserve Chairman. The likelihood of Kevin Hassett, who is considered crypto-friendly, is seen to be decreasing.
In contrast, the market now sees Kevin Warsh as the leading candidate, a figure who is more cautious about crypto and supports the development of a central bank digital currency (CBDC), thus depressing risk sentiment.
Bitcoin is currently trading around $87,100 after buyers entered at low levels, but BTC’s market capitalization has shrunk to $1.72 trillion despite increasing dominance.
Altcoins suffered a bigger fall, with several assets recording double-digit losses, while the total crypto market capitalization fell by more than 4% in a day.
