On Tuesday, Bitcoin slipped from above $76,500 to the $75,000 level during the day, a drop that followed statements made by U.S. Federal Reserve Chair nominee Warsh during a Senate Banking Committee hearing. Warsh clarified that President Donald Trump had not asked him for any rate cuts, dampening market expectations of rapid easing under a Warsh-led Fed. His remarks erased early gains not just in the crypto space, but also in the S&P 500 and Nasdaq indexes.
Warsh’s influence and the crucial $75,000 threshold for Bitcoin
Warsh’s investments in crypto assets and decentralized finance (DeFi) projects, together with his description of Bitcoin as “digital gold,” attracted widespread attention. As a former Fed governor, his potential appointment would mark the first time the U.S. central bank is led by someone open to digital assets. Analysts note that if the Fed pursues looser policy in the year’s second half, renewed liquidity could pave the way for Bitcoin to approach $100,000.
In the markets, the $75,000 mark remains critical for Bitcoin. Major trading desks emphasize that this level must hold for April’s recovery to continue. A move below $75,000 could shift focus towards the $70,000 range—previously seen as a support area during the Iran Gulf tensions in March. Conversely, a decisive move higher could soon bring $78,000 back into play.
By stressing “I did not advise the President on what the interest rate level should be,” Warsh lowered short-term policy expectations for both crypto and traditional markets.
This week’s technical outlook is further complicated by geopolitical risk, as the U.S.-Iran truce ended on Wednesday evening. No new negotiation delegations have been dispatched, and U.S. Vice President JD Vance’s planned trip has been cancelled.
Strategy overtakes BlackRock with historic Bitcoin purchase
Amid these turbulent developments, the most striking event of the week was the massive Bitcoin acquisition by Michael Saylor’s MicroStrategy (“Strategy”). The firm revealed it bought 34,164 Bitcoins between April 13 and 19 for $2.54 billion, paying an average of $74,395 per coin. This purchase ranks as the company’s third largest and marks the highest weekly accumulation since November 2024.
Strategy’s total Bitcoin holdings have now reached 815,061 coins, translating to roughly $61.5 billion at current spot prices. With this move, the firm surpassed BlackRock’s iShares Bitcoin Trust for the first time to become the publicly traded company holding the most Bitcoin. BlackRock’s fund, by comparison, holds 802,823 BTC. Since early 2026, Strategy has added nearly 80,000 BTC to its reserves.
The financing structure behind this acquisition is also noteworthy. Eighty-six percent of the latest purchase was funded through the company’s perpetual preferred stock, STRC, while the rest came from MSTR common shares. This approach allows continued accumulation without diluting shareholder equity. Even during Bitcoin’s 50% price slide from its peak in late 2025, Strategy remained a consistent buyer, establishing itself as the market’s largest institutional demand source.
DeFi security breach and its market repercussions
Over the weekend, an attack on Kelp DAO refocused attention on DeFi infrastructure vulnerabilities. An exploited gap on the Kelp DAO bridge, valued at $293 million, enabled attackers to mint uncollateralized rsETH and withdraw real assets from the Aave protocol. As a result, Aave’s balance sheet now faces roughly $200 million in bad debt, while the total value locked in the broader DeFi ecosystem dropped by $14 billion.
Analysts warn that such security flaws could slow down tokenization projects at banks and asset managers. In a note to institutions, Andrew Moss from Jefferies remarked that although traditional financial tokenization efforts are gaining speed, recent events will push security reviews to the forefront before any upcoming launches. Nevertheless, Moss contends that in the long term, visions for stablecoin-based payments and on-chain capital markets remain intact.
The indirect impact on Bitcoin itself has thus far remained limited. Funds continue to flow into major assets like BTC and Ether. Notably, spot Bitcoin ETFs saw net inflows totaling $1.29 billion between April 14 and 17, helping the market absorb the Kelp shock without triggering a broader downturn.
What to watch for next week?
Three main factors will shape Bitcoin’s outlook this coming week: The first is the remainder of Warsh’s Fed chair confirmation process and any signals about the Fed’s balance sheet. According to CME FedWatch data, the probability of a rate cut in June currently sits at just 1.6%. Second, whether the U.S.-Iran ceasefire is extended before its scheduled end on Wednesday night: failure to do so may fuel risk-off sentiment. Third, continued aggressive buying from Strategy and whether exchange appetite remains robust.
For now, Bitcoin holds its structurally strong position—thanks to a listed firm surpassing the top spot ETF for the first time in history. However, short-term moves will remain driven by central bank policy, Middle East uncertainties, and DeFi security headlines as markets search for direction.
