#USGovShutdown
Crypto Market Alert: The "Warsh" Effect 📉
The crypto market is enduring a brutal start to February 2026, as a "risk-off" tidal wave sweeps through digital assets. Following the nomination of Kevin Warsh as the next Fed Chair, fears of a hawkish pivot and a shrinking central bank balance sheet have triggered mass liquidations.
Key Real-Time Data (Feb 1, 2026)
* Bitcoin (BTC): Slipped below the psychological $80,000 mark, currently trading near $78,566 (down ~6.5% in 24h).
* Ethereum (ETH): Struggling to hold the $2,700 level after a 10% slide.
* Market Cap: The global crypto market cap has retreated to $2.66 trillion, losing over $100 billion in a single day.
* Liquidations: Over $1.6 billion in leveraged positions were wiped out in the last 24 hours, the sharpest correction in months.
Why the Panic?
The "Golden Era" narrative under the current administration is facing its first major stress test. Investors are spooked by potential liquidity tightening and the lack of immediate progress on US market-structure regulations. Notably, capital is rotating into traditional havens; while BTC falters, Gold and Silver—despite their own recent volatility—are capturing the "fiat-hedge" attention.
The Bottom Line
Market sentiment has plunged into "Extreme Fear" (18/100). While long-term bulls view the sub-$80k levels as a "disciplined accumulation" zone, short-term traders should brace for continued choppiness as the market digests the new Fed leadership era.