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ToggleThe cryptocurrency market experienced a brief sharp drop on the afternoon of the 23rd (Taiwan time), with Bitcoin falling below $76,000 to $74,500, extending its 24-hour decline to 3.7%. Ethereum also slipped to $2,007, with a 24-hour drop of 4.8%, and the total amount of liquidations across the network continued to climb.
Warsh elected Fed Chairman: Seismic waves in the crypto market
The sharp drop was directly triggered by Kevin Warsh's official confirmation by Congress as the new Fed Chairman. As a relatively hawkish new Fed Chairman, Warsh's lower tolerance for inflation and expectations of an earlier interest rate hike cycle led the market to repric the interest rate path. Crypto assets, as "risk pricing instruments," were the first to be affected, triggering a round of selling pressure.
According to the market, this volatility triggered a wave of liquidations across the entire network exceeding $2.5 billion, covering long positions in BTC, short positions in ETH, as well as Layer 1 and DeFi tokens.
Institutional Profit Lock-in and a Stronger Dollar: Multiple Driving Forces
Multiple institutional reports indicate that the scale of this volatility far exceeds what a single Fed personnel appointment could explain. Whale's profit booking, weak inflows into BTC spot ETFs, and the simultaneous rise in the US dollar index (DXY) together constitute the three driving forces behind this selling pressure.
Analyst opinion: Reset or opportunity?
Bearish view : Warsh's hawkish signals suggest a tighter interest rate environment in the second half of 2026 than the market expects. BTC may be entering a "reset phase," and may test the $72,000 support level in the short term.
Bullish view : On-chain data shows that whales are actively accumulating in the $74,500 range. Large addresses (over $10M) have added approximately $800 million in BTC spot holdings in the past 24 hours, indicating that institutional funds view this volatility as a "discounted buying" opportunity.
Risk Warning
In the short term, if Warsh's Fed dot plot continues to push up the 10-year US Treasury yield, the crypto market may face further valuation compression. Investors should pay attention to the BTC 72,000–73,000 range (200-day moving average) and the next liquidation threshold. This article is not investment advice; please manage your risk accordingly.
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