Macro and policy uncertainty trigger a broad selloff
The cryptocurrency market came under heavy pressure, with Bitcoin falling below $92,000 and Ethereum slipping under $3,200. The decline followed rising speculation over who could become the next chair of the U.S. Federal Reserve, a development that pushed investors away from risk-sensitive assets, including crypto.
According to the source material, the selloff—described as a “Black Monday” event—was linked to uncertainty around whether Donald Trump might nominate Kevin Warsh to replace Jerome Powell as Fed chair. Warsh is widely viewed as a policy hawk, and the possibility of a more restrictive monetary stance appears to have unsettled markets already sensitive to macro signals.
Liquidations accelerate the downward move
As prices dropped, derivatives markets saw rapid deleveraging. Total liquidations reached $593 million within four hours, with long positions accounting for most of the wipeout. That wave of forced selling amplified the decline and highlighted how much leveraged bullish positioning had built up beforehand.
Bitcoin and Ethereum both weakened during the move. The original report also showed BTC and ETH changing by -0.33% and -0.29%, respectively. While those figures may not capture the full intensity of intraday volatility, they reinforce the broader picture of pressure across major digital assets.
Trade tensions and stalled legislation add to the pressure
Beyond Fed-related speculation, Trump’s aggressive trade proposals added another layer of instability. The report said he proposed a 10% tariff on goods from several European countries. Such measures tend to heighten concern over global trade friction and macro uncertainty, weakening overall appetite for speculative investments.
At the same time, the stalled progress of the CLARITY Act in the U.S. Senate further weighed on the sector. Because the bill is tied to the regulatory framework for cryptocurrencies, its delay has deepened uncertainty around the legal environment for digital assets. That uncertainty has pressured not only token prices but also crypto-related equities.
Investors now focus on policy signals
Overall, the downturn appears to be the result of several policy-driven concerns hitting the market at once: Fed leadership speculation, trade policy risks, and delayed crypto regulation. Until there is greater clarity on those fronts, volatility in digital assets may remain elevated. For market participants, the key issue is no longer just price action, but how U.S. monetary, trade, and regulatory policy evolve from here.