The cryptocurrency market cap fell 2.9%, with 91 of the top 100 coins declining, led by Bitcoin down 2.1% and Ethereum down 7.2%. The drop was triggered by the nomination of Kevin Warsh as Fed Chair and hotter-than-expected Producer Price Index data, causing a hawkish shock and negative sentiment reflected in ETF outflows and extreme fear in market sentiment. Technical analysis suggests the market remains in a corrective wave phase, with further downward pressure likely in the short term but potential for Wave V rally in Q2 2026.