New York, January 30, 2026, 10:15 EST — Regular session underway.
Bitcoin dropped 2.4%, hitting $83,331 in New York morning trading, after falling as low as $81,169 earlier on Friday. Ether declined 2.6% to $2,741.
The sell-off followed moves by President Donald Trump to name Kevin Warsh as the next Federal Reserve chair, a shift that sent the dollar climbing and put pressure on riskier assets. Damien Boey, portfolio strategist at Wilson Asset Management, summed it up as talk of “pulling the rug out.” Sean Dawson from Derive.xyz added that “fears around AI exuberance” also weighed on sentiment. 1
On Friday, Trump revealed he’s nominating Warsh, a former Fed governor, to replace Jerome Powell after Powell’s term as chair concludes in May, the Associated Press reported. The Senate must confirm the nomination. 2
Investors remain divided on whether Warsh will push for lower rates or focus on tightening liquidity by shrinking the Fed’s balance sheet, as well as whether political hurdles could disrupt the transition. “It’s one thing to appoint somebody and it’s entirely different to actually be Chairman of the Federal Reserve,” said Chris Beauchamp, chief market analyst at IG Markets. 3
The Fed hit the brakes. On January 28, it held the benchmark rate steady between 3.50% and 3.75%, noting that inflation “remains somewhat elevated.” 4
The Fed’s next rate decision is set for March 17-18, as outlined in the central bank’s 2026 meeting calendar. 5
Traders are set to focus on the U.S. Employment Situation report for January, scheduled for release on February 6, looking for evidence the labor market is cooling enough to ease rate hike expectations. 6
Inflation figures will follow shortly. The Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s favored inflation measure, is set for release on February 20, the Bureau of Economic Analysis reports. 7
Risk appetite took a hit after Big Tech’s spending plans sparked a rough reaction. Microsoft shares dropped sharply following the company’s report of record AI-related expenses alongside slower cloud growth. Eric Clark, portfolio manager at LOGO ETF, noted, “revenues are up 17% and the cost of revenues are up 19%.” 8
Some strategists warn the initial market reaction to Warsh could shift. Gary Paulin, international chief investment strategist at Northern Trust Asset Management, noted investors are questioning: “what does that mean for asset pricing and for liquidity,” given Warsh’s comments on shrinking the Fed’s balance sheet, despite his reputation for supporting lower rates. 9
The near-term outlook remains tangled. Should the Senate confirmation drag on or Warsh hint at a gentler stance than expected, crypto might stabilize. But if yields climb and liquidity dries up heading into February, bitcoin’s attempts to bounce back could face persistent selling pressure.
Bitcoin traders are now focused on whether expectations for rate cuts will change following the Fed’s decision to hold steady in January. The February 6 jobs report and the February 20 PCE data loom as key indicators before the Fed meets again on March 17-18. On top of that, the political process surrounding Warsh’s confirmation adds another layer of uncertainty. 10
