Bitcoin has entered a period of heightened vulnerability, shedding 6.5% in the past 24 hours—slightly worse than the broader crypto market’s 6.31% decline—and extending its weekly losses to nearly 12%. This sharp downturn is not driven by a single factor but by a confluence of macroeconomic turbulence, operational stress in the mining sector, and a decisive technical breakdown that together have intensified bearish sentiment across the ecosystem.
The catalyst for the latest wave of risk-off behavior traces back to U.S. politics: former President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve Chair. Known as a staunch inflation hawk and dollar advocate, Warsh’s potential appointment sent shockwaves through traditional safe-haven markets. Gold and silver collapsed in a historic liquidation event, erasing an estimated $7 trillion in value over just two days. The resulting surge in the U.S. dollar undermined the investment case for non-yielding assets like Bitcoin, which had recently benefited from narratives around monetary debasement and scarcity. As investors fled leveraged positions across commodities, the contagion spilled into digital assets, overwhelming even positive developments such as Binance’s announcement to convert its $1 billion SAFU fund into BTC.
Compounding this macro pressure is acute distress within Bitcoin’s mining backbone. A severe winter storm sweeping across the United States forced major mining operations offline, triggering the steepest drop in network hashrate since late 2021. Hashrate has fallen by roughly 12%, dipping to 970 exahashes per second—the lowest level since September 2025. With daily mining revenue crashing from $45 million to just $28 million in 48 hours, many miners now face severe financial strain. To stay solvent, some may be compelled to sell their Bitcoin reserves, introducing additional downward pressure on price at a time when liquidity is already thin.
Technically, Bitcoin’s chart has turned decisively bearish. The price has broken below both its 7-day ($85,777) and 30-day ($90,522) simple moving averages—key dynamic support levels that often anchor bullish trends. Even more telling is the 7-day Relative Strength Index (RSI), which has plunged to 14.9, deep into oversold territory. While such extremes can sometimes precede short-term rebounds, they primarily reflect panic selling and a loss of buyer conviction. The next critical support lies at $75,815; a breach of that level could ignite another wave of liquidations and accelerate the downtrend.
In sum, Bitcoin is caught in a perfect storm: a macro regime shift favoring the dollar, internal network fragility due to mining disruptions, and deteriorating technical structure. Although the extreme oversold condition may invite a tactical bounce, the dominant trend remains firmly bearish. Market participants are now watching closely to see whether $75,815 holds—or whether this correction is just beginning.
