.svg)
Bitcoin edged closer to the crucial $70,000 mark on Thursday as selling pressure continued across the cryptocurrency market.
The world’s largest digital currency fell more than 3% during Asian trading, dropping to around $70,052 — its lowest level since November 2024. Ether, the second-largest cryptocurrency, also declined nearly 2% to about $2,086. A fall below $2,000 would be its weakest level since May last year.
Analysts say the sharp downturn was triggered by the nomination of Kevin Warsh as the next chair of the US Federal Reserve. Markets fear he could pursue a tighter monetary policy by reducing the Fed’s balance sheet, a move that would limit liquidity and hurt speculative assets like cryptocurrencies.
Bitcoin has now lost over 7% this week and nearly 20% so far this year, while ether is down close to 30% in 2026.
Cryptocurrencies have historically benefited from abundant liquidity, often rallying when central banks expand their balance sheets. A shift toward tighter policy has therefore weighed heavily on investor sentiment.
Analysts at Deutsche Bank pointed to large and sustained outflows from institutional crypto exchange-traded funds (ETFs) as another key factor behind the slump. US spot bitcoin ETFs reportedly saw more than $3 billion in outflows in January, following heavy withdrawals in November and December.
The continued selling suggests traditional investors are stepping back from digital assets, leaving market confidence fragile.
