Crypto shares slid in overnight trading. BitMine down over 15%; SharpLink Gaming down 14%; Strive down 9%; CleanSpark down over 9%; Strategy down 8%.
Bitcoin fell to $76,889 after former Federal Reserve Governor Kevin Warsh was selected as the next Fed chair. Some investors and traders are concerned he might tighten up on cash in the financial system.
Warsh has called for regime change at the central bank and wants, among other things, a smaller Fed balance sheet.
Bitcoin and other cryptocurrencies have been regarded as beneficiaries of a large balance sheet, having tended to rally while the Fed greased money markets with liquidity - a support for speculative assets.
Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin, said the Fed's "bloated balance sheet combined with heavy-handed bank regulation" had kept liquidity trapped on Wall Street instead of flowing to Main Street, helping fuel bubbles in assets such as bonds, crypto, metals and meme stocks.
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