Bitcoin Drops to $78,710 Amid Fed Chair Transition and Thorchain Hack

Bitcoin experienced a significant intraday decline, falling to $78,710 on May 15, 2026, representing a 2.55% drop from morning levels. This downturn was driven by three converging negative factors. First, Kevin Warsh officially assumed the role of Federal Reserve Chair, replacing Jerome Powell. Historical patterns suggest Fed transitions often correlate with major cryptocurrency drawdowns, and Warsh has signaled no immediate commitment to rate cuts despite inheriting a 3.50% rate environment. Second, sentiment was further dampened by a security breach at Thorchain, where an attacker drained approximately $10.8 million across multiple networks, causing the native RUNE token to plummet 12% and prompting a halt in trading. Third, macroeconomic pressures intensified as Treasury yields reached their highest point since mid-2025 following a 3.8% April CPI print, with Bank of America pushing expectations for the first Fed cut to the second half of 2027. Consequently, Bitcoin failed to hold above its 200-day moving average of $80,671, slipping into the lower half of its recent trading range.