Crypto Lost Trust After Gensler: Is Powell's Exit Next?
30 Apr 2026 · 10:00 UTC · Live Bitcoin News RSS Feed · Original source
Read original at Live Bitcoin News RSS Feed →
Summary
Bitcoin declined significantly following Gary Gensler's departure from the SEC in January 2025, falling from $109,000 to approximately $76,063 as of April 2026. Crypto analyst Benjamin Cowen draws parallels between this price decline and questions about whether Federal Reserve Chair Jerome Powell's potential exit could trigger similar market reactions. The article examines correlations between regulatory and central banking leadership transitions and cryptocurrency market performance, speculating whether crypto could experience another major correction if Powell were to leave the Federal Reserve.
Why it matters
The article's central thesis relies on historical correlation: Gensler's exit coincided with significant Bitcoin decline, implying Powell's departure would trigger similar reaction. This reasoning contains multiple assumptions: (1) Gensler's departure was the primary cause of the $33K decline rather than other macroeconomic factors; (2) Powell's exit would carry equivalent market weight; (3) current sentiment is comparable to January 2025. Critical uncertainties exist: Is Powell actually planning to exit? The article provides no confirmed timeline or concrete evidence, only speculation. Fed chair transitions typically follow planned schedules, reducing shock value. Current Bitcoin weakness already reflects bearish sentiment; additional regulatory uncertainty may have limited marginal impact if priced in. The successor's policy stance remains unknown—could be hawkish or dovish. Altcoins' sensitivity to regulatory risk means they would face disproportionate downside in a continued bearish scenario. Overall confidence remains moderate due to the speculative trigger event lacking verification.
Expected impact
The article speculates on potential crypto market impacts if Federal Reserve Chair Powell exits his position, drawing parallels to the price decline following Gary Gensler's departure from the SEC in January 2025. Bitcoin fell approximately $33,000 post-Gensler, dropping from $109K to current levels around $76K. Powell's exit would likely create policy uncertainty and reduce institutional confidence in the regulatory environment. Altcoins would underperform Bitcoin during such regulatory transitions due to their higher sensitivity to risk-off sentiment. Near-term impacts (minute/hour) would be minimal unless concrete news breaks; daily and weekly effects could be more pronounced as market digests uncertainty. Monthly horizon effects depend on successor choice and ultimate policy direction. However, bitcoin has already declined substantially from January levels, suggesting some bearish factors may be priced in already.