{"id":158777,"date":"2026-04-30T14:30:47","date_gmt":"2026-04-30T14:30:47","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=158777"},"modified":"2026-04-30T14:30:47","modified_gmt":"2026-04-30T14:30:47","slug":"what-the-bitcoin-drop-since-gensler-left-says-about-markets-and-regulation","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=158777","title":{"rendered":"What The Bitcoin Drop Since Gensler Left Says About Markets And Regulation"},"content":{"rendered":"

When Gary Gensler left the US Securities and Exchange Commission in January 2025, Bitcoin was trending higher, and many expected a more favorable regulatory backdrop to drive further upside<\/a>. Instead, BTC has fallen sharply to a zone that complicates a once-popular narrative that regulation, or Gensler specifically, was the primary force holding the market back.<\/p>\n

Bitcoin\u2019s Price May Be Saying More About Markets Than Regulators<\/h2>\n

The market reaction to regulatory change hasn\u2019t played out the way many expected. Analyst Benjamin Cowen has mentioned<\/a> on X that when Gary Gensler stepped down from the US Securities and Exchange Commission (SEC) in January 2025, Bitcoin was trading around $109,000. Today, it sits closer to $75,000.<\/p>\n

Cowen argues that one major reason the crypto markets<\/a> have suffered is that market participants started to lose faith in the industry itself. After Gensler left, it essentially just opened the floodgates to the grift age of crypto.\u00a0<\/p>\n

During the period, the influencers and politicians were launching memecoins and rug-pulling their followers every day, without fear of any repercussions. This led to a massive misallocation of capital, with liquidity flowing into speculative assets instead of strengthening the broader ecosystem.<\/p>\n

While people celebrated Gensler\u2019s exit, it marked a turning point in the industry, with BTC only marginally going higher before entering a bear market. According to Cowen, now that some people are celebrating Jerome Powell\u2019s removal as chair of the Federal Reserve<\/a>, it is a sign that history could repeat itself. They celebrated it in the short term, which will mark a turning point in credibility for the Fed in a few years.<\/p>\n

If the Fed becomes another cabinet within the executive branch, it may lead to a lack of trust in the institution. In a few years<\/a>, participants will realize that markets were better off with Powell than without him.<\/p>\n

Liquidity Sweeps Into FOMC Are Becoming A Familiar Setup<\/h2>\n

Bitcoin has shown a consistent pattern around Federal Open Market Committee (FOMC) meetings, and it\u2019s not bullish in the short term. A crypto trader known as Max Trades highlighted<\/a> that following the last seven FOMC meetings, BTC dropped sharply after each decision.<\/p>\n

What makes the current setup notable is how closely it mirrors the conditions seen before the March<\/a> meeting. Back then, price rallied into the event, repeatedly sweeping local highs while building a large pool of liquidity below. That structure marked the local top, followed by a 13% correction that erased most of the prior move.<\/p>\n

Heading into the current interest rate decision, these factors are in place, with BTC price trading just below a major higher-timeframe resistance level, adding another layer of confluence to the downside scenario. However, if this same scenario plays out similarly, the BTC price<\/a> could point to the formation of another local top around this event.<\/p>","protected":false},"excerpt":{"rendered":"

When Gary Gensler left the US Securities and Exchange Commission in January 2025, Bitcoin was trending higher, and many expected a more favorable regulatory backdrop to drive further upside. Instead, BTC has fallen sharply to a zone that complicates a once-popular narrative that regulation, or Gensler specifically, was the primary force holding the market back. […]<\/p>\n","protected":false},"author":0,"featured_media":158778,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-158777","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/158777"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=158777"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/158777\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/158778"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=158777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=158777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=158777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}