Bitcoin Plunges Below $80,000 Amid Liquidity Concerns, Fed Chair Selection

• Bitcoin, the largest cryptocurrency, dropped 6.4% to $78,823.63 on Sunday, continuing its decline.
• The fall began Friday, reaching $81,104, its lowest since November 21, following the selection of Kevin Warsh as Fed chair.
• Investors fear Warsh, a proponent of a smaller Fed balance sheet, might tighten financial system liquidity.
• Cryptocurrencies have historically benefited from the Fed's large balance sheet and liquidity injections.
• Ether also saw a significant drop of 11.76% to $2,387.77, with experts predicting further selling.

Why It Matters: Bitcoin and Ether plummeted due to fears of tighter liquidity under the new Fed chair, signaling further declines.