Crypto market corrects amid Fed chair uncertainty, AI bubble fears

Bitcoin and altcoins have fallen in tandem amid uncertainty over the appointment of the next U.S. Federal Reserve Chair and broader U.S. macroeconomic concerns, Cointelegraph reported. The media outlet explained that reports of President Trump's team favoring a more independent candidate have diminished the prospects for Kevin Hassett, who is considered favorable to interest rate cuts. The mention of Kevin Warsh as a potential nominee has subsequently eased concerns about dollar instability. Additionally, the market correction was amplified by the liquidation of approximately $527 million in long positions over the past 24 hours due to excessive leverage. Growing caution over a potential debt bubble fueled by expanding AI investment has also prompted a shift away from risk assets.