Bitcoin dropped from $109K after Gensler left. Now Powell exits the Fed. Could history repeat itself for crypto markets?
Bitcoin hit $109,000 when Gary Gensler left the SEC in January 2025. Today, it trades around $76,063, per CoinGecko data. That sharp decline has reignited a familiar debate.
Crypto analyst Benjamin Cowen draws 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 May 2026, Cowen sees the pattern repeating.
Related reading:
Bitcoin Bear Market and the Post-Gensler Effect
Cowen argues that Gensler’s departure opened doors for bad actors. Influencers and politicians launched memecoins daily.
Many rug-pulled their followers with zero legal consequences. Capital flooded into assets with little real value. That liquidity drain, Cowen suggests, pushed Bitcoin into a bear market.
CoinGecko confirms Bitcoin’s current struggles. The asset recorded a 1.29% drop in 24 hours. It also fell 2.53% over the past seven days.
The numbers tell a story many in the industry find uncomfortable. What many celebrated as a win may have cost the market dearly.
Powell’s Fed Exit and the Risk to Market Credibility
Jerome Powell’s term as Fed chair ends May 15, 2026. Kevin Warsh has been nominated as his replacement. A Senate panel has already cleared Warsh’s nomination.
Powell, however, confirmed he plans to remain on the Fed Board of Governors. His board term runs until January 2028.
Powell cited an ongoing federal investigation into Fed headquarters renovations as his reason for staying. President Trump has pushed back hard.
Trump has threatened to remove any Fed official who stays on after their chair term ends. That political tension is adding new uncertainty to markets already on edge.
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Fed Rate Decision Adds to the Uncertain Climate
The Federal Open Market Committee voted 8-4 to hold rates steady. The benchmark funds rate remains between 3.5% and 3.75%.
Markets had fully priced in no change, but the internal split surprised many observers. Powell noted that near-term inflation expectations have risen. The Fed projects U.S. PCE inflation at 3.5% for March 2026.
Powell also flagged higher energy prices as an upward pressure on inflation. He pointed to the Middle East situation as a source of ongoing uncertainty.
The Kobeissi Letter summarized Powell’s stance simply: current Fed policy remains “appropriate.” For now, the Fed holds its ground. But the leadership transition looms large over every future decision.
Source: https://www.livebitcoinnews.com/crypto-lost-trust-after-gensler-is-powells-exit-next/
