Prominent analyst Benjamin Cowen expressed in a recent X post that the decline in the cryptocurrency market since early 2025 reflects a broader erosion of trust that began following Gary Gensler’s departure from the SEC. He noted that Bitcoin has dropped from $109,000 to approximately $75,000. Cowen cautioned that celebrating Jerome Powell’s potential exit from the Federal Reserve may lead to similar credibility issues in traditional markets. He argues that Gensler’s exit, while met with enthusiasm, effectively enabled bad actors to operate without repercussions, which resulted in a flood of capital into ‘useless assets’ rather than projects with real utility. Following Gensler’s departure, Bitcoin saw a brief uptick before declining again, negating the anticipated rally. Cowen observed a comparable trend regarding Fed Chair Jerome Powell, particularly as he is expected to lead his last meeting, where the benchmark interest rate remains unchanged at 3.50%-3.75%. Incoming chair Kevin Warsh, a Trump appointee, is viewed positively by many in the market, with hopes that he would adopt a more aggressive approach towards rate cuts. However, Cowen cautioned against this optimism, stating that if the Fed appears to align too closely with the executive branch, it could undermine trust in the institution. Additionally, Turkish crypto commentator Cihan0x.ETH highlighted that anticipated rate cuts have been pushed back from 2026 to 2027 due to inflation driven by energy costs, influenced by global events such as the Iran conflict. Powell also announced he would continue serving on the Fed’s board, complicating the power dynamics within the board by maintaining a ‘two Popes’ situation as both the current and former chair will be present.
