When Gary Gensler left the SEC in January 2025, Bitcoin was trending higher, and many expected a more favorable regulatory backdrop to lead to further progress. upside down. Instead, Bitcoin has fallen sharply into territory that complicates the once-common narrative that regulation, or Gensler specifically, was the primary force holding the market back.
Bitcoin price may say more about markets than regulators
The market has not reacted to the regulatory change in the way many expected. Analyst Benjamin Quinn Mentioned On Today it is close to $75,000.
Related reading
Quinn argues that one of the main reasons is Crypto markets What we experienced was that market participants began to lose confidence in the industry itself. After Gensler’s departure, this opened the floodgates to the era of deceptive encryption.
During that period, influencers and politicians were launching cryptocurrencies and attracting their followers every day, without fear of any repercussions. This has led to widespread misallocation of capital, with liquidity flowing into speculative assets rather than strengthening the broader ecosystem.
While people celebrated Gensler’s exit, it marked a turning point in the industry, as Bitcoin rose only slightly before entering a bear market. According to Quinn, now that some people are celebrating Jerome Powell’s removal as committee chairman Federal ReserveIt is a sign that history can repeat itself. They celebrated it in the short term, which would mark a turning point in the Fed’s credibility in a few years.
If the Fed turns into another cabinet within the executive branch, it could lead to a lack of confidence in the institution. In a few YearsParticipants will realize that markets were better off with Powell than without him.
FOMC liquidity sweeps have become a familiar setup
Bitcoin has shown a consistent pattern around the Federal Open Market Committee (FOMC) meetings, which is not bullish in the short term. Cryptocurrency trader known as Max Trades Highlight After the last seven FOMC meetings, Bitcoin has fallen sharply after each decision.
Related reading
What makes the current setup notable is how close it is to mirroring the conditions that existed before He walks interview. At the time, the price surged during the event, repeatedly surpassing local highs while building a large pool of liquidity below. This structure formed a local top, followed by a 13% correction that erased most of the previous movement.
Heading into the current interest rate decision, these factors are present, with BTC price trading just below a key resistance level in the higher time frame, adding another layer of confluence to the bearish scenario. However, if the same scenario happened in the same way, then… Bitcoin price It could indicate the formation of another local summit around this event.
Featured image from Pixabay, chart from Tradingview.com
