Bitcoin continued its downturn this Friday, penalized by speculation around the possible nomination of Kevin Warsh, former governor of the American Federal Reserve (Fed), at the Head of the United States Central Bank under a possible administration of Donald Trump. Such a perspective would move the hypothesis away from Short-term monetary easing, a scenario that is not very favourable for assets risky.

Around 10:35am, the main cryptocurrency fell 6.2% over 24 hours to 82,390 dollars, thus reaching its level of lowest in two months, according to data from CoinMarketCap.

For Linh Tran, market analyst at XS.com, this weakness of Bitcoin does not reflect a deterioration in its fundamentals. “It mainly reflects short-term adjustments related to the global monetary environment and the evolution of risk appetite ”, she explains. The expert recalls that Bitcoin remains particularly sensitive to American monetary policy, while the Fed does not seem ready to reduce its rates immediately.

In the same sense, XTB France emphasizes that This decline comes as prediction markets strengthen the probability of Kevin Warsh being named the next Fed chair. Such a Hypothesis revives fears of a lasting monetary tightening, generally unfavorable to cryptocurrencies and assets considered risky.

Moreover, in the face of rising tensions geopolitical, investors are increasingly preferring stocks safe havens, in particular gold, at the expense of Bitcoin, which is still perceived as an asset to high risk by a large part of institutional investors.

Despite this withdrawal, Linh Tran wants to reassuring about the long-term prospects. She points out that the offer of Bitcoin remains strictly limited, while its institutional adoption continues to progress. “Corrections such as the one currently observed are an integral part of market dynamics and should not be interpreted as a signal of the end of the trend,” she concludes.

Major cryptocurrencies (around 10:35am)

— Bitcoin: -6.2% over 24 hours, at 82,390

— Ether: -7.4%, to 2,725.8 dollars — XRP: -7%, to 1.74 dollars

— BNB

— Solana: -6.2%, to 115.3 dollars