Crypto analyst Benjamin Cowen has argued that declining trust in the digital asset space began after Gary Gensler stepped down from the U.S. Securities and Exchange Commission. He noted that since early 2025, Bitcoin has dropped from around 109,000 dollars to roughly 75,000 dollars, reflecting broader concerns about credibility in the market.
Cowen also cautioned that a similar situation could unfold in traditional finance if Jerome Powell leaves the Federal Reserve under politically charged circumstances.
From Celebration to Market Concerns
According to Cowen, Gensler’s departure was initially welcomed by many in the crypto community. However, he believes it removed a sense of accountability, allowing questionable projects and influencers to operate without meaningful consequences.
He claims that this shift encouraged the rise of speculative assets, including meme coins, which diverted capital away from projects with real utility. As a result, liquidity across the market weakened, and the anticipated strong rally in Bitcoin failed to materialize.
Concerns Over Federal Reserve Independence
Cowen sees a comparable pattern emerging with Powell, whose tenure as Fed chair is nearing its end. Despite expectations that new leadership could introduce more aggressive rate cuts, Cowen warned that aligning the Federal Reserve too closely with political interests could damage its credibility.
He argued that maintaining institutional independence is more important for long term market stability than short term policy benefits such as lower interest rates.
Meanwhile, Kevin Warsh, a nominee supported by Donald Trump, is expected to succeed Powell. Many investors view this transition as positive, anticipating a more accommodative monetary policy.
Uncertainty Around Future Rate Cuts
Crypto commentator Cihan0x.ETH expanded on these concerns, noting that expectations for interest rate cuts have been pushed further into the future, now potentially delayed until 2027. Rising global energy costs, partly linked to geopolitical tensions involving Iran, have contributed to persistent inflation, limiting the Fed’s flexibility.
The Federal Reserve itself has acknowledged that increasing energy prices are a factor influencing inflation, making it more difficult to ease monetary policy regardless of leadership changes.
A Complex Leadership Transition Ahead
Adding another layer of complexity, Powell has indicated he plans to remain on the Federal Reserve board after his term as chair ends. He cited ongoing legal and political pressures as reasons for staying on.
This decision could prevent additional appointments and may create an unusual situation where both a current and former chair serve on the same governing board, potentially complicating decision making within the institution.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
