Bitcoin 15-Month Low: Market Sinks as Warsh Nomination Jolts Risk Assets
Bitcoin faced a highly volatile start to the year as selling pressure intensified across global markets. The world’s largest cryptocurrency dropped to a 15-month low earlier this week, briefly trading in the low-to-mid $60,000 range. Although prices recovered some losses by Friday, sentiment remained fragile as investors reduced exposure to risk assets amid growing uncertainty.
The decline mirrored a broader risk-off move in technology stocks and heavily leveraged crypto trades, amplifying downside momentum. At the same time, markets closely analyzed the potential impact of changes in Federal Reserve leadership, which added to macroeconomic concerns. Combined with tightening financial conditions and cautious investor positioning, these factors weighed heavily on Bitcoin and the wider digital asset market.
What’s driving the selloff
A sharp equity pullback particularly in high-growth and AI-linked names—has spilled over into digital assets, prompting liquidations across major tokens. Sentiment was further tested after President Donald Trump nominated former Fed governor Kevin Warsh to chair the Federal Reserve, a choice markets are parsing for its rate-policy implications. Bitcoin is down roughly a quarter year-to-date, and intraday liquidations topped $1 billion amid the slide.
Market breadth: Ether, Solana and others
Losses extended beyond Bitcoin. Ether fell into the high-$1,800s and other majors like Solana also posted double-digit declines during Thursday’s washout, underscoring broader fragility across the asset class.
Scope of the drawdown
From the October 2025 top near $126,273 to this week’s trough, Bitcoin’s drawdown has approached the high-40% range, while aggregate crypto capitalization has shed roughly $2 trillion since October. Some strategists warn of potential further downside toward ~$38,000 if historical bear-market analogs repeat.
Policy backdrop and Trump-linked crypto ventures
While the administration has signaled a friendlier tone toward digital assets, headlines around Trump-linked crypto initiatives have also drawn scrutiny. Reports detail plans for token issuance tied to Trump-affiliated businesses and activity around World Liberty Financial (WLFI), a firm linked to the Trump family that recently attracted a large foreign investment and a congressional inquiry.
bitcoin 15-month low: What it means for investors
The 15-month low places Bitcoin back at late-2024 levels, erasing much of the post-election “policy optimism” rally and re-tightening its correlation with broader risk assets and the U.S. dollar. In the near term, flows, liquidity, and positioning rather than on-chain fundamentals are likely to drive price action.
Gauging the next move after the bitcoin 15-month low
Key catalysts include Senate confirmation milestones for the incoming Fed chair, macro data (inflation, payrolls), and equity-market leadership. Sustained weakness in growth stocks or a hawkish policy tone could keep pressure on crypto benchmarks. Conversely, stabilization in tech and clearer policy signals may help the market base.
Context & Analysis
Analysis: Bitcoin’s sensitivity to real yields and equity-market risk appetite remains elevated. A Warsh-led Fed however ultimately dovish or hawkish adds a transition variable markets will price through spring 2026. Until liquidity improves and volatility normalizes, ranges may remain wide.
Final Thoughts
Bitcoin’s recovery from newly set 15-month lows remains fragile, with momentum lacking strong conviction. While prices have bounced from recent weakness, uncertainty continues to dominate market sentiment. Traders remain cautious as volatility persists and confidence in a sustained upside move is still limited.
Looking ahead, upcoming macroeconomic and policy developments could significantly influence price action. With key Federal Reserve decisions and economic signals approaching, Bitcoin’s price discovery is likely to stay uneven and choppy. In this environment, disciplined risk management and close monitoring of Fed-related developments will be essential for navigating the weeks ahead.
FAQs
Q : Why did Bitcoin fall this week?
A : A risk-off move in tech stocks, leveraged liquidations, and uncertainty around Federal Reserve leadership triggered broad selling pressure.
Q : What is the recent Bitcoin 15-month low level?
A : Bitcoin slipped into the low-to-mid $60,000 range, marking its weakest level since October 2024, before staging a partial rebound.
Q : How far is Bitcoin from its all-time high?
A : Bitcoin is currently about 48% below its October 2025 peak of nearly $126,273.
Q : Did other cryptocurrencies drop too?
A : Yes, major altcoins such as Ether and Solana recorded double-digit losses during the market selloff.
Q : Could Bitcoin fall below $40,000?
A : Some strategists warn of a possible decline toward $38,000, based on historical market cycles, though the outlook remains uncertain.
Q : What role does the Fed play here?
A : Changes in Fed leadership and policy direction can impact risk appetite, real yields, and liquidity key factors influencing crypto prices.
Q : How can investors reduce risk during volatility?
A : Investors should focus on position sizing, diversification, avoiding leverage, using staggered entries, and ensuring secure asset custody.
Facts
Event
Bitcoin falls to a 15-month low before partial reboundDate/Time
2026-02-06T12:36:00+05:00Entities
Bitcoin; Donald Trump; Kevin Warsh; Federal Reserve; World Liberty FinancialFigures
~$63.8K intraday low; ~$2T market cap decline since October 2025; ~48% below ATH (~$126,273). (USD)Quotes
“Bitcoin plunged… lowest since October 2024… Crypto market has lost $2 trillion since October peak.” Reuters report.Sources
Barron’s; Reuters; Financial Times; The Washington Post.