Crypto Turmoil: A Deep Dive into Bitcoin's Recent Slide

Bitcoin and other major cryptocurrencies have experienced sharp declines amid a broader market selloff in tech shares and commodities. The decline in cryptocurrencies is in part driven by speculation over changes at the Federal Reserve. Sector-wide issues in tech are adding pressure to digital asset prices.

Bitcoin plunged on Thursday, with its decline accelerating as a broader market selloff grips tech shares and commodities. The largest cryptocurrency fell to $66,675.12, its lowest since October 2024, as investors reacted to Donald Trump's campaign promises to support crypto.

Crypto's decline coincided with volatility in metals and stocks. Bitcoin's weekly drop reached 11%, setting the year's loss at 23%. Ether fell similarly by more than 7% on Thursday, leading to questions about the broader market's impact on digital currencies.

The selection of Kevin Warsh as the potential next Federal Reserve chair has fueled fears of reduced liquidity, causing more volatility. Market sentiment remains fragile following significant withdrawals from institutional ETFs, raising concerns among investors and analysts alike.

(With inputs from agencies.)