Bitcoin dropped from $109K after Gensler left. Now Powell exits the Fed. Might historical past repeat itself for crypto markets?
Bitcoin hit $109,000 when Gary Gensler left the SEC in January 2025. Immediately, it trades round $76,063, per CoinGecko information. That sharp decline has reignited a well-recognized debate.
Crypto analyst Benjamin Cowen attracts a direct line between Gensler’s exit and what he calls the “grifting age” of crypto. Now, with Federal Reserve Chair Jerome Powell stepping down in Might 2026, Cowen sees the sample repeating.
Associated studying:
Fed Determination Looms: What’s Subsequent for Crypto and Bitcoin?
Bitcoin Bear Market and the Put up-Gensler Impact
Cowen argues that Gensler’s departure opened doorways for dangerous actors. Influencers and politicians launched memecoins day by day.
Many rug-pulled their followers with zero authorized penalties. Capital flooded into property with little actual worth. That liquidity drain, Cowen suggests, pushed Bitcoin right into a bear market.
CoinGecko confirms Bitcoin’s present struggles. The asset recorded a 1.29% drop in 24 hours. It additionally fell 2.53% over the previous seven days.
The numbers inform a narrative many within the trade discover uncomfortable. What many celebrated as a win could have value the market dearly.
When Gensler left the SEC in January 2025, Bitcoin was at 109k. Immediately Bitcoin is at 75k.
One main cause the crypto markets have suffered is as a result of market individuals began to lose religion within the trade itself.
After Gensler left, it primarily simply opened the floodgates…
— Benjamin Cowen (@benjamincowen) April 29, 2026
Powell’s Fed Exit and the Danger to Market Credibility
Jerome Powell’s time period as Fed chair ends Might 15, 2026. Kevin Warsh has been nominated as his substitute. A Senate panel has already cleared Warsh’s nomination.
Powell, nevertheless, confirmed he plans to stay on the Fed Board of Governors. His board time period runs till January 2028.
Powell cited an ongoing federal investigation into Fed headquarters renovations as his cause for staying. President Trump has pushed again arduous.
Trump has threatened to take away any Fed official who stays on after their chair time period ends. That political rigidity is including new uncertainty to markets already on edge.
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Fed Energy Conflict Ends: Tillis Alerts Inexperienced Gentle for Warsh
Fed Fee Determination Provides to the Unsure Local weather
The Federal Open Market Committee voted 8-4 to maintain charges regular. The benchmark funds fee stays between 3.5% and three.75%.
Markets had absolutely priced in no change, however the inside cut up stunned many observers. Powell famous that near-term inflation expectations have risen. The Fed initiatives U.S. PCE inflation at 3.5% for March 2026.
Powell additionally flagged increased power costs as an upward strain on inflation. He pointed to the Center East scenario as a supply of ongoing uncertainty.
SUMMARY OF FED CHAIR POWELL’S STATEMENT:
1. Close to-term US inflation expectations have risen
2. The Fed sees US PCE inflation at 3.5% in March 2026
3. Greater power costs will “push up” near-term inflation
4. Center East scenario is contributing to uncertainty
5. Present Fed…
— The Kobeissi Letter (@KobeissiLetter) April 29, 2026
The Kobeissi Letter summarized Powell’s stance merely: present Fed coverage stays “acceptable.” For now, the Fed holds its floor. However the management transition looms massive over each future determination.