Bitcoin Plunges to 2026 Low: Is a $70,000 Drop Next as Fed Uncertainty Rocks Markets?

Bitcoin's Sharp Decline Continues

Bitcoin's price has taken a significant hit, dropping to as low as $81,000 in late Thursday evening U.S. hours before bouncing back slightly to around $82,000. This marks a fresh low for 2026, with the cryptocurrency shedding nearly $10,000 over the past 24 hours alone.

Market-Wide Carnage

The broader cryptocurrency market has not been spared, with prices tanking by 7% to 9% over the same period. Key altcoins like Ether (ETH) are hovering around $2,700, BNB around $843, and XRP around $1.74.

Liquidation Surge

More than $777 million in crypto long positions were liquidated in just the past hour, bringing the total to a staggering $1.75 billion over the past 24 hours, according to data from CoinGlass.

Technical Support Levels at Risk

At current levels, Bitcoin is barely holding above its November low of just under $81,000. If this support fails, the next critical level could be the April 2025 low of $75,000, which was related to tariff concerns. Analysts warn that a drop below $85,000 could signal a further collapse, potentially pushing Bitcoin down to $70,000.

Fed Chair Speculation Fuels Volatility

Traders are reacting to reports that U.S. President Donald Trump plans to nominate former Federal Reserve Board member Kevin Warsh to replace current Fed Chair Jerome Powell. Trump announced he would name his nominee on Friday morning, following criticism of Powell and the Fed for not reducing rates.

Polymarket odds on Warsh being the nominee have soared to 87%, up from just 37% two hours ago. Previously, Rick Rieder, BlackRock's fixed-income chief and seen as a more dovish candidate, was considered a frontrunner. Warsh was reportedly at the White House on Thursday, adding to the speculation.

This uncertainty around Federal Reserve leadership is contributing to market jitters, as investors assess the potential impact on monetary policy and, by extension, cryptocurrency valuations.