Early Wednesday morning, Bitcoin dropped to as low as $66,804. Ethereum fell below $2,000, while XRP and BNB recorded losses exceeding 4%. Markets have entered a more cautious pricing regime in recent days.

Three main reasons behind Bitcoin’s decline:

• Hawkish signals from the Federal Reserve
• Liquidation of leveraged positions
• Weak institutional capital inflows

Kevin Warsh “Shock” and Liquidity Concerns

BTC declined 3.1% over the past 24 hours, while Ethereum slid 4.1% to $1,965. XRP lost 4.3% and BNB dropped 4.5%. This move isn’t purely technical — it reflects a clear macro reassessment.

According to Bitrue Research Lead Andri Fauzan Adziima, the primary driver of the sell-off is a hawkish shift in Fed expectations following Kevin Warsh’s emergence. This implies tighter liquidity conditions and fewer rate cuts ahead.

Adziima noted that investors are currently watching the $60,000–$65,000 range as a critical support zone. If this area holds, prices could stabilize sideways. Otherwise, any recovery may require renewed macroeconomic easing.

Major Cleanup in Leveraged Trades

Kronos Research CIO Vincent Liu said derivatives data indicates a significant leverage flush. Deep position closures were observed across exchanges, while funding rates suggest most overleveraged trades have been wiped out.

Liu added that institutional capital remains on the sidelines. Large players are reluctant to re-enter aggressively until they see sustained ETF momentum or fresh macro catalysts.

While inflows into exchange-traded funds (ETFs) continue, they have yet to offset price pressure. SoSoValue data reflects this cautious backdrop. On Tuesday, spot Bitcoin ETFs recorded net inflows of $166.56 million, up from $145 million the previous day. Spot Ethereum ETFs saw more modest inflows of $13.82 million.

As risk appetite weakens, investors have shifted into a more defensive short-term stance.

Data Calendar Will Be Decisive

Despite crypto weakness, Asian markets opened higher. South Korea’s Kospi rose 1.24% by midday, while Hong Kong’s Hang Seng gained 0.42%. Japanese markets were closed for a public holiday.

In the U.S., performance was mixed. The S&P 500 declined 0.33%, Nasdaq Composite fell 0.59%, while the Dow Jones posted a modest 0.1% gain. This divergence followed weaker-than-expected retail sales data, showing consumer spending remained flat in December.

Market participants are now focused on U.S. labor market data due Thursday. These figures could reshape expectations around the future rate path and significantly influence overall risk sentiment.

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The post Why Did Bitcoin Fall Below $67,000? appeared first on Coin Engineer.

Trump Targets Fed Chair Powell

Donald Trump once again targeted Federal Reserve Chair Jerome Powell. He said Powell was acting like a “stubborn mule” regarding interest rate cuts. Claiming Powell is damaging the economy, Trump argued that borrowing costs have risen and accused Powell of making decisions that are “not in the country’s interest.” 

“I would very much like Fed Chair Powell to resign,” Trump stated. 

Additionally, Trump expressed his frustration by saying, “I think we should be paying 1% right now, but we’re paying more because I believe we have a man suffering from Trump Derangement Syndrome.” He defended rate cuts as a way to stimulate growth and called Powell “a fool.” 

Trump’s Crypto Comments

While continuing his criticism of Powell, Trump also touched on Bitcoin and cryptocurrencies. The President stated, “Bitcoin eases the pressure on the dollar.” He expressed his interest in the crypto world by saying, “Crypto is a very fun thing,” suggesting he is exploring alternatives to traditional monetary policies. 

Fed’s Cautious Approach Conflicts with Trump

Trump believes quickly lowering interest rates would accelerate economic recovery. On the other hand, Powell is more cautious. Highlighting the risk of inflation, Powell warned that premature rate cuts could lead to long-term economic imbalances. 

The Fed made several rate cuts last year, but has since adopted a “wait and see” policy. Moreover, Powell emphasized that the labor market remains strong, and thus, hasty decisions could be risky. Trump has increased pressure for rate cuts, especially with new tax reduction packages and rising government spending. He argues that lower interest rates would make it easier to finance government debt. 

Powell’s term ends in May 2026. Trump mentioned he is considering potential replacements, including former Fed Governor Kevin Warsh. Trump aims to appoint someone who will “stimulate growth” as the new Fed Chair. 

Trump has supporters as well. Businessman Grant Cardone posted on social media: 

“Fed Chair Jerome Powell should resign today! There is no inflation, and he is punishing the American middle class with high mortgage rates.” 

Trump also addressed trade policies. He said he believes all trade barriers with India will be lifted, adding, “The real problem is Powell not lowering interest rates.” He also made new tariff announcements regarding China and Canada. 

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