Bitcoin, the largest cryptocurrency by market capitalization, traded lower on Saturday, falling 6.53% to $78,719.63 as of 12:48 p.m. ET (1748 GMT). Earlier on Friday, bitcoin dipped to $81,104, its weakest level since November 21. The slide in the digital asset coincided with a firmer U.S. dollar after former Federal Reserve Governor Kevin Warsh was named as the next Fed chair, a development that has raised concerns about potential tightening of cash available in the financial system.
Ether also moved sharply lower, down 11.76% to $2,387.77 on Saturday afternoon. The broader cryptocurrency complex has struggled for clear direction since the sizable decline experienced last year. Market participants have noted that cryptocurrencies have lagged behind strong rallies in both gold and equities despite expectations that the period following the recent political transition might bring increased flows and more favorable regulation for digital assets.
Bitcoin has shed roughly one third of its value since reaching record highs in October, according to available market comparisons. This contraction contrasts with notable gains in other asset classes, leaving crypto investors contending with heightened volatility and underperformance relative to some alternative investments.
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The market reaction on Friday and into Saturday highlights the sensitivity of cryptocurrencies to shifts in macroeconomic expectations, particularly those tied to U.S. monetary policy and dollar strength. Traders and investors are monitoring developments closely as the selection of the next Fed chair introduces uncertainty about future liquidity conditions.
Overall, the moves on Saturday underscore ongoing challenges for the crypto market as it attempts to regain momentum after last year’s setback, while other assets such as gold and stocks have outpaced digital tokens in recent rallies.