New York, Feb 2, 2026, 06:12 (EST) — Premarket
Bitcoin dropped close to 1%, hitting $77,582 Monday morning after sliding to a session low of $74,609. Ether took a bigger hit, tumbling 4.6% to $2,279.
Traders trimmed risk following Donald Trump’s pick of former Fed governor Kevin Warsh to lead the Federal Reserve, a move that boosted the dollar and unsettled markets. Now focus turns to a packed schedule of economic reports and central bank meetings, which could alter interest rate forecasts.
Crypto losses followed a sharp sell-off in precious metals, pushing investors to trim holdings across the board. CME Group bumped up margin requirements on select metal futures after Friday’s drop, intensifying the rush for liquidity.
Bitcoin dropped 6.5% on Saturday, slipping to roughly $78,720 amid concerns over liquidity in the financial system, according to Reuters. “Sometimes these price adjustments feed on themselves,” said Brian Jacobsen, chief economist at Annex Wealth Management. Since hitting record highs in October, Bitcoin has shed about a third of its value, the report noted. Reuters
Warsh has pushed for shrinking the Fed’s balance sheet — cutting back its bond holdings — which would slowly pull cash out of markets. But Joe Abate, a U.S. rates strategist at SMBC Capital Markets, called shrinking the balance sheet “a nonstarter,” noting that banks prefer to keep reserves where they are now. Reuters
Fund flows provided minimal support. On Jan. 30, U.S. spot bitcoin exchange-traded funds—which hold bitcoin to mirror its price—experienced net outflows totaling roughly $510 million, data from Farside Investors show.
Weekend trading often sees low volume, and when prices cross crucial thresholds, leveraged positions can amplify the swings.
The slide might deepen if the dollar strengthens or bond yields rise, making it tougher for non-yielding assets like bitcoin. However, any market stabilisation or indications that liquidity won’t tighten dramatically could help ease the pressure on prices.
Friday’s U.S. jobs report for January, released by the Bureau of Labor Statistics at 8:30 a.m. ET, is the next key data point. Any unexpected shift in payroll numbers could swiftly alter Fed policy forecasts—and with them, risk appetite.
Related articles: NASDAQ:CME
