Silver and BTC Prices Tumble, Attributions Loosely Hang on Kevin Warsh

• Silver records $75.5 per ounce.
• BTC prices reach $70,091.03.
• Kevin Warsh earlier expressed a preference to shrink the balance sheet of the US Federal Reserve.

Silver and BTC prices have declined over the last 24 hours. While there are several factors that could have triggered this downturn, some part of it is attributed to Kevin Warsh, the next US Fed Chair. The sentiment, in an extension, reflects in the outflows from Spot ETFs as well.

Prices of Silver and BTC

Silver and BTC are testing their respective support margins. The precious metal recorded $75.5 against a single ounce, representing a decline of around 13%. Silver’s fall comes despite a 2-day gain period, which boosted investors’ confidence is seeking an alternative solution during high volatility.

BTC prices briefly traded at $70,091.03, triggering fear in the crypto community about further losses. This is given that Kalshi Traders earlier put out a bearish forecast of $64,000 in 2026, now revised to $60,000, with an 80% chance. The flagship is currently trading at $71,484.63, down by 6.02% in the last 24 hours.

For a quick reference, Gold was last seen recording a value of $4,862 per ounce, down by 2%. As for currencies, the Australian Dollar and Kiwi slipped by 0.5% and 0.3%, respectively.

Why Kevin Warsh?

A part of the ongoing turmoil is attributed to a comment by Kevin Warsh. Known to be a supporter of rate cuts, Kevin earlier expressed his preference to shrink the balance sheet of the US Federal Reserve. This essentially means a withdrawal of government demand for Treasuries. Experts have associated it with tightening financial conditions.

This is being looked at as a risky move because it brings a chance of increasing market volatility and lowering the response time to financial instability. Experts have expressed their opinion by saying that a smaller balance sheet would not provide any tailwinds for the crypto market.

Interestingly, a decline across the commodity and crypto segments was also reported after his pick by US President Donald Trump.

ETF Outflows

Needless to say, the crypto market often benefits when the Fed’s balance sheet is larger. What’s also reflecting the fear among crypto enthusiasts is consecutive outflows from ETFs. Spot Bitcoin ETFs noted an outflow of $544.9 million on February 04, 2026, after recording an outflow of $272 million on the previous day.

Spot Ethereum ETF also noted an outflow on February 04, but the amount was comparatively smaller, $79.4 million. Nevertheless, both ETFs have been logging consecutive outflows for longer streaks.

It remains to be seen how the US January 2026 employment and inflation data come out because further movements could take a sigh of relief.

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