NEW YORK, Feb 5, 2026, 06:15 (EST) — Premarket update
Bitcoin dipped again on Thursday, hovering near $70,000 and last checked down roughly 6.7% at $70,666 in early U.S. premarket action. Ether dropped about 6.4%, landing at $2,087. During the session, Bitcoin fluctuated between roughly $70,098 and $76,130.
The drop has been linked to President Donald Trump’s pick of Kevin Warsh as the next Federal Reserve chair, raising fears the central bank might accelerate its balance sheet reduction. “The market fears a hawk with him,” said Manuel Villegas Franceschi of Julius Baer. Deutsche Bank analysts flagged “massive withdrawals from institutional ETFs,” noting U.S. spot bitcoin ETFs faced over $3 billion in outflows during January following heavy redemptions late last year. Bitcoin has fallen more than 7% this week and nearly 20% so far this year, they added. Reuters
The Fed’s balance sheet is key for crypto as it signals how much liquidity is in the system. When the Fed lets its assets shrink, traders often see it as a drag on risk assets.
The selloff has refocused attention on spot bitcoin ETFs — funds that hold bitcoin and trade on stock exchanges — as a key, visible route for institutional money flowing in and out of the market.
Washington’s regulatory scene remains tangled. A White House meeting this week, intended to break the deadlock on digital-asset laws, wrapped up with no deal. Banks and crypto companies remain at odds over stablecoin rewards, Reuters reported. Reuters
Macro data are up next. The Labor Department’s calendar lists job openings data set for later Thursday, with the January jobs report slated for Feb. 11 and the January CPI inflation report on Feb. 13. These dates shifted due to a government services lapse. Bureau of Labor Statistics
If bitcoin slips under $70,000, it would test a key level that has historically attracted buyers and pushed sellers out during past declines. Such a round number often sparks stop-loss orders and option hedges, particularly when liquidity dries up.
The situation could shift fast. Should ETF outflows slow down or Warsh hint at a more gradual reduction of Fed holdings, the market might find its footing. On the flip side, a strong inflation report would push it in the opposite direction.
Warsh’s nomination remains under review in Washington, but an ongoing probe into Fed Chair Jerome Powell is stirring uncertainty around the confirmation. Reuters reported the development on Wednesday. Reuters
Traders are eyeing the jobs report and CPI data, scheduled for Feb. 11 and Feb. 13, searching for hints on interest rates and how aggressively the Fed might tighten its grip on liquidity-sensitive assets such as crypto. Reuters
