Bitcoin dips below $78,000 after silver selloff

In afternoon trading, Bitcoin, the ⁠world’s largest cryptocurrency ‍by ‍market ‍value, sank below $78,000, down 7.6%. Ethereum slid about 11% to $2,382.57, while Solana lost 13% at $101.91.

The slide in crypto comes in the wake of Trump’s selection of Kevin Warsh to lead the Fed, which bolstered the U.S. dollar as it eased concerns about the central bank’s independence. Dollar strength may reduce bitcoin’s appeal among investors as an alternative currency.

If confirmed by the U.S. Senate, Warsh would replace sitting Chairman Jerome Powell. Powell’s current term as chair ends in May. Trump has criticized Powell — particularly about his unwillingness to reduce interest rates — almost since the Fed chair took the job in 2018.

The slide in crypto is the latest blow to retail investors, who were buffeted by a sharp selloff in spot silver on Friday, the worst day for the market since March 1980.

Spot silver was down 28% at $83.45 an ounce, trading near its lows of the day. Silver futures plummeted 31.4% to settle at $78.53.