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Bitcoin plunges 7% after Fed nominee Warsh sparks $2.4B crypto liquidations amid rate hike fears

Market News
23 Aug 2026
AMBCrypto
View Source
Bearish
pluang ai news

On January 30, 2026, Kevin Warsh was nominated as Federal Reserve Chair, triggering a sharp crypto market sell-off due to expectations of higher interest rates and aggressive balance-sheet cuts. Bitcoin dropped 7% from $84.6k to $78.7k, with $2.4 billion in long positions liquidated, marking the largest crypto liquidation event of 2026. The Federal Reserve has kept rates steady between 3.50% and 3.75% through five decisions this year, but uncertainty remains ahead of the September meeting. Without a shift to looser monetary policy or dovish signals, Bitcoin may continue to face selling pressure amid tight liquidity and high interest rates.

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