Bitcoin, SEC Head Change a Bad Omen?..."Gensler Out, Scammers Thrive"

▲ Gary Gensler, Bitcoin (BTC)/AI generated image

Gary Gensler's resignation, instead of leading to regulatory liberation in the cryptocurrency market, has resulted in the spread of a lawless zone, creating a paradoxical situation where Bitcoin (BTC) prices have plummeted from their peak.

According to crypto media outlet NewsBTC on April 30 (local time), analyst Benjamin Cowen pointed out that the price of Bitcoin, which was $109,000 in January 2025 when former U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler stepped down, has now fallen to around $75,000. Cowen diagnosed that the regulatory vacuum has ushered in an era of loss of trust and scams in the industry.

Since Gensler's resignation, the market has seen a lawless free-for-all, with influencers and politicians rushing to launch memecoins and daily rug pulls targeting their followers. This behavior hindered the efficient allocation of capital and led to the side effect of liquidity flowing only into speculative assets rather than strengthening the ecosystem. The cheers for deregulation have, in fact, become a turning point for entering a bear market.

Market attention is now shifting to the fate of Federal Reserve Chairman Jerome Powell. Cowen warned that while some welcome Powell's removal, the current situation signals a repetition of the history seen during Gensler's resignation. He analyzed that if the Federal Reserve falls under political influence, trust in the institution will collapse, and within a few years, people will realize that the Powell era was better.

From a technical perspective, short-term downward pressure is also strong. Cryptocurrency trader Max Trades noted that Bitcoin prices have plummeted without exception after the last seven Federal Open Market Committee (FOMC) meetings. It is highly likely that the pattern of prices rising just before the meeting to absorb high-point liquidity, followed by a large-scale correction of around 13%, will repeat this time.

Currently, Bitcoin is trading just before a major resistance level on higher timeframes, and a downward scenario similar to the past is forming. With changes in the regulatory environment and macroeconomic events intertwined, market uncertainty has reached its peak, and investors are focusing on whether actual market confidence will be restored rather than mere optimism.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*