Khaberni - Cryptocurrencies have lost more than 12.7% of their value over the last 7 days amid sudden collapses in gold and silver, and the announcement by President Donald Trump of his nominee for the head of the Federal Reserve to succeed Jerome Powell.
Bitcoin, Ethereum, and Solana retreated as individual investors absorbed a week filled with events and sharp fluctuations in commodities, and a long-awaited announcement by President Donald Trump regarding his choice for the next Federal Reserve Chairman.
Late in the trading on Saturday, Bitcoin, the world's largest cryptocurrency by market value, fell below $79,000, dropping 6.1%, while Ethereum fell about 9% to $2445.31 and Solana coin lost 9.9% at $105.50.
The decline in cryptocurrencies followed Trump's selection of Kevin Warsh to lead the Federal Reserve, which boosted the U.S. dollar as it alleviated concerns about the central bank’s independence. The strength of the dollar might diminish the appeal of Bitcoin among investors as an alternative currency.
If the U.S. Senate confirms Warsh’s appointment, he will replace the current Chairman, Jerome Powell. Powell's current term as chairman ends in May, according to "CNBC", as reported by "Al Arabiya Business".
Trump has criticized Powell - particularly with regard to his reluctance to cut interest rates - since he took over as the head of the Federal Reserve in about 2018.
The downturn in cryptocurrencies is the latest blow to individual investors, who faced sharp sell-offs in spot silver on Friday, marking it the worst day for the market since March 1980.
The spot price of silver fell by 28% to $83.45 per ounce, trading near its lowest levels during the day. Silver contracts dropped by 31.4% to settle at $78.53.
