Core Insights - Bitcoin has fallen below $80,000, trading at $77,984, marking a 10.79% decline since the start of 2026 [1] - The cryptocurrency is currently 37% below its all-time high of $124,752 from October 2025, with a 21.75% decline over the past twelve months [2] - The current market environment is described as a "double-barrel" blow to sentiment due to the confirmation of Kevin Warsh as the next Federal Reserve Chair [2] ETF Outflows - Bitcoin ETFs have experienced a three-month consecutive redemption streak, the longest since their inception in January 2024, with approximately $5.67 billion withdrawn during this period [3] - Outflows accelerated in November with $3.48 billion leaving Bitcoin ETFs, followed by reductions of $1.09 billion in December and $1.61 billion in January [4] - Total net assets in Bitcoin ETFs dropped from a peak of $152.01 billion in July 2025 to $107.65 billion as of Monday [4] Institutional Holdings and Market Sentiment - There has been a 29% decline in institutional holdings, coinciding with broader macro fears and a market repricing following Warsh's confirmation [5] - Investors are anticipating earlier policy normalization or tightening from the central bank, raising questions about the "Fed Put" [5] - Gold and silver prices have also retraced amid reduced demand for non-yielding assets, with higher margin requirements contributing to cross-asset contagion [5] Market Volatility - Significant deleveraging events across the cryptocurrency market have occurred, with liquidations wiping out over $2.5 billion in leveraged long positions [6] - Bitcoin prices trended down to $74,500, while Ether fell below $2,170, with Bitcoin stabilizing above $74,500, aligning with the 2025 cycle lows [6]