The global financial landscape has shifted dramatically on this Thursday, February 5, 2026, as a broad risk-off sentiment sweeps through both traditional and digital markets. The primary catalyst is the recent nomination of Kevin Warsh as the next Federal Reserve Chair, which has triggered what traders are calling the Warsh Effect. This hawkish signal, suggesting a tighter grip on liquidity, has sent Bitcoin tumbling 8% in a single session, briefly touching the $70,000 mark—its lowest level in 15 months.
This decline has triggered over $800 million in leveraged liquidations, flushing out more than 165,000 traders. Surprisingly, even traditional safe havens like gold and silver have mirrored this drop, as investors flee to the absolute safety of cash. While long-term analysts like Michael Burry warn that Bitcoin's failure to act as a digital hedge exposes a "weak foundation," others point out that the underlying network remains robust. For now, the market is locked in a high-stakes psychological battle; if the $70,000 floor holds, it may mark the bottom of this 2026 "Deep Winter," but a break below could open the doors to a much colder $60,000 reality.
