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Bitcoin Rebounds Above $78,500 After Weekend Selloff as Fed Shift Pressures Crypto

Expectations of tighter Fed liquidity under Kevin Warsh drove the selloff.

Overview

  • Bitcoin recovered to roughly $78,700 on Sunday after dropping to about $75,700 on Saturday, though it remains down about 6.7% since Friday.
  • The coin trades more than 30% below its October peak near $125,000, while ether slid roughly 11.8% to about $2,388 during the decline.
  • Total crypto market capitalization stands near $2.64 trillion, about 39% below the October 2025 record, according to CoinGecko data cited in coverage.
  • Markets are reacting to Kevin Warsh’s elevation to lead the Federal Reserve and a stronger dollar, with investors bracing for reduced liquidity conditions.
  • Analysts note broken technical supports and “extreme fear” sentiment readings, warning bitcoin remains vulnerable to further downside without a momentum recovery.