BTCUSD Today, February 01: Warsh Pick, Silver Rout Push Below $79K
The bitcoin price dropped below $79,000 today as traders reacted to Kevin Warsh emerging as President Trump’s choice to lead the Federal Reserve and a sharp silver selloff that hit risk assets. Dollar strength and fewer expected rate cuts pressured crypto into the weekend. The pair BTCUSD briefly tested deeper support after a wide intraday swing. Ethereum and Solana also fell as U.S. traders de-risked ahead of lighter weekend liquidity. We break down the macro drivers, key technical levels, and what could steady the tape for the U.S. session.
Fed pick and silver rout jolt crypto
Markets read Kevin Warsh as a more hawkish potential Fed chair, which supports a stronger dollar and fewer rate cuts in 2026. That backdrop weighed on risk assets and the bitcoin price. Headlines tied to the nomination kept volatility high, according to early coverage from CNBC. For U.S. traders, a firmer dollar often tightens financial conditions for crypto, especially when positioning is long.
A violent silver selloff added to risk-off flows, pushing traders to raise cash and trim exposure. Cross-asset stress tends to hit high beta tokens first, and the bitcoin price followed lower as metals weakness fed into broader de-risking. The break below $80,000 added to nerves, with analysts calling it a confidence test, per Bloomberg.
Technical setup: levels and signals to watch
Spot trades near $78,648 after a range between $75,644 and $84,138. Price sits below the 50-day average at $89,813.60 and the 200-day at $104,526.08, keeping the medium-term tone cautious. Notably, Bollinger Bands put the lower band at $84,208.69, so price below that band flags short-term stretch. Nearby supports sit at the intraday low $75,644 and the year low $74,420.69.
RSI at 48.91 is neutral, which suggests neither overbought nor oversold on a daily basis despite the sharp slide. ADX at 25.89 signals a firm trend in place. MACD is negative (MACD -245.82 vs Signal -967.46) but the positive histogram of 721.64 hints momentum could stabilize if price reclaims prior breakdown zones.
ATR sits at 3,252.65, so two-day swings near $6,500 are common in the current tape. Keltner lower at $83,600.01 and Bollinger lower at $84,208.69 both sit above spot, reinforcing that price is stretched. A daily close back above $84,200 would ease pressure. Failure to hold $75,600 risks a run at $74,421.
ETH and SOL extend the slide alongside bitcoin
Ethereum dropped to $2,449.36, down 13.08% on the day, with a range between $2,238.74 and $2,710.09. Price sits well below the 50-day average at $3,050.78 and the 200-day at $3,671.04. The pair ETHUSD remains sensitive to dollar strength and equity risk sentiment, so stabilization in crypto likely needs calmer macro and steadier metals.
Solana slipped to $105.44, down 10.35%, with an intraday low at $96.52 and high at $118.72. Price is below its 50-day average at $130.40 and the 200-day at $170.95. SOL’s higher beta can deepen moves when bitcoin weakens, so watch for any intraday base building near $100 as a first sign of fatigue in selling.
The day’s pattern points to a simple chain: stronger dollar and metal stress tightened financial conditions, risk appetite faded, and high beta tokens took larger hits. If the bitcoin price stabilizes first, alts often follow with a lag. Conversely, fresh dollar strength could keep pressure on ETH and SOL into thinner weekend trading.
What U.S. traders can watch next
Focus stays on headlines tied to the Warsh nomination and any hints on the rate path or balance sheet policy. A softer dollar would help. Until then, the bitcoin price likely trades level to level. Watch for confirmation with a daily close back above prior band levels and improving breadth across large caps.
Weekend order books can be thin, so slippage and wider spreads are common. That can exaggerate both rallies and dips. Use limit orders and avoid chasing large candles. Intraday, monitor how quickly bids refresh near $76,000 and whether sellers fade above $84,000. That microstructure can reveal the next directional push.
On the upside, a reclaim of $84,200 and then $89,814 (50-day) would ease downside momentum. On the downside, keep an eye on $75,644 and $74,421 as support. For process, set alerts rather than hard predictions, size positions conservatively, and reassess if macro headlines change the dollar or rate expectations.
Final Thoughts
Today’s slide below $79,000 reflects a macro one-two punch: a perceived hawkish turn with Kevin Warsh as potential Fed chair and a sharp silver selloff that chilled risk appetite. Technically, price sits below key moving averages and even under lower volatility bands, so bounces can be fast but fragile. We are watching $84,200 first, then the 50-day near $89,814 as markers of repair. On the downside, $75,644 and $74,421 are the key supports. ETH and SOL mirrored the move, underscoring the role of the dollar. For U.S. traders, let the levels and dollar tone lead, use alerts, and avoid overtrading thin weekend liquidity.
FAQs
Why did the bitcoin price drop below $79,000 today?
Two main drivers hit at once. Markets read Kevin Warsh as a more hawkish potential Fed chair, which lifted the dollar and repriced rate cuts. At the same time, a sharp silver selloff sparked broader risk-off flows. Together they pressured crypto and pushed bitcoin through $80,000 support.
Who is Kevin Warsh and why does he matter for crypto?
Kevin Warsh is a former Federal Reserve governor often viewed as more hawkish on inflation and policy. As President Trump’s reported pick to lead the Fed, investors anticipate tighter policy than expected. A stronger dollar and higher-for-longer rates typically weigh on crypto valuations and liquidity conditions.
What bitcoin levels matter most after today’s move?
We are watching $84,200 as the first repair level and $89,814 near the 50-day average as a bigger hurdle. On the downside, $75,644 intraday low and $74,421 year low are key supports. A daily close back above $84,200 would help stabilize the tape into next week.
How are ETH and SOL reacting to the bitcoin move?
ETH fell to $2,449.36, down about 13%. SOL dropped to $105.44, down about 10%. Both trade below their 50-day and 200-day averages, which keeps momentum soft. If the bitcoin price firms up, alts can stabilize, but renewed dollar strength could extend pressure in the near term.
Does silver’s selloff really affect crypto prices?
Yes, on days when investors de-risk across assets, stress in metals can spill into crypto. Funds cut exposure and raise cash, which hits high beta tokens first. Silver’s slump coincided with a stronger dollar, a combination that tends to weigh on the bitcoin price and broader crypto.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
