Plunge

Kevin

Gold

<ul>
 <li>Commodities have plunged, crypto prices have dropped.</li>
 <li>Kevin Warsh’s selection could be one possible factor.</li>
 <li>Additional factors are India’s Budget 2026 and the US-Iran conflict.</li>
</ul>
Monday saw commodities decline and the crypto market fall in a possible response to the selection of Kevin Warsh as the next US Fed Chair. Also acting as additional factors are India’s 2026 Budget and the ongoing US-Iran conflict, triggering allocation to safer spaces as Gold &amp; Silver lose their respective values too.
<h3 class="wp-block-heading" id="h-warsh-and-a-drop-in-commodities-amp-crypto-market">Warsh, and a Drop in Commodities &amp; Crypto Market</h3>
US President Donald Trump’s next pick for the US SEC Chair is Kevin Warsh. There’s now a reaction from the market as expected, with a decline in commodities and a plunge across the global crypto market. A fall in commodities is led by losses in silver, gold, and oil.
According to a <a href="https://www.reuters.com/world/china/slump-commodities-rattles-global-markets-2026-02-02/" rel="noopener noreferrer nofollow">report by Reuters</a>, choosing Warsh has triggered a trend of recording sales in risk assets. This, in an extension, includes the crypto market. There is a possibility of more sales in the next few days, especially in the crypto segment, even though select <a href="https://thenewscrypto.com/whale-wallet-accumulates-eth-amid-heavy-crypto-price-drops-led-by-btc/" rel="noopener noreferrer nofollow">whale wallets</a> are seen accumulating the dips.
For a quick reference, gold was last seen with a decline of 9% and silver with a fall of over 13%. Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia (CBA), has said in a statement that investors view Warsh as more hawkish, adding that a stronger US Dollar is also adding pressure.
<h3 class="wp-block-heading" id="h-momentum-of-crypto-market">Momentum of Crypto Market</h3>
The global crypto market losing its momentum is largely evident from a fall of 3.20% in its market cap, which is currently hovering around $2.56 trillion. The FGI has shifted to 15 points with a fall to 30 points on the Altcoin Index, per <a href="https://coinmarketcap.com/" rel="noopener noreferrer nofollow">CoinMarketCap</a>. Top tokens, BTC and ETH, have shed 2.66% and 8.10% of their respective values.
For a quick reference, BTC is now trading at $76,433.96, and ETH is listed at $2,232.31. BNB and XRP are the next top tokens that have lost around 3.65% and 4.65% of their respective values over the last 24 hours. Notably, <a href="https://thenewscrypto.com/kalshi-traders-are-bearish-on-bitcoin-will-btc-price-stand-the-test/" rel="noopener noreferrer nofollow">Kalshi Traders</a> had earlier expressed bearish sentiment around BTC, saying that the flagship cryptocurrency could go as low as $64,000 this year.
<h3 class="wp-block-heading" id="h-additional-possible-factors">Additional Possible Factors</h3>
Factors other than Warsh’s selection that might be contributing to the decline across the markets are <a href="https://thenewscrypto.com/india-retains-crypto-tax-regime-introduces-new-reporting-penalties-in-budget-2026/" rel="noopener noreferrer nofollow">India’s 2026 Budget</a> and the US-Iran conflict.
Crypto enthusiasts in India were speculating on tax reliefs or a revised tax structure; however, both have been left unchanged. In fact, the budget has mentioned new penalties for non-compliance in crypto tax reporting. Experts have signalled that the focus could be more on compliance, considering <a href="https://www.chainalysis.com/blog/2025-global-crypto-adoption-index/" rel="noopener noreferrer nofollow">India already dominates</a> the crypto market in terms of adoption.
The US-Iran conflict has not cooled down. This has instilled a sense of uncertainty – making investors be more aware about their allocations to risky assets, crypto in this instance. The issue was last reported to be in talks.
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Warsh-Pick Triggers a Commodity Decline, Indirectly Instigates Crypto Market Plunge

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