Bitcoin: Is SEC Head Change Bad News?..."Gensler Out, Scammers Thrive"

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

Gary Gensler's resignation led not to a regulatory liberation of the cryptocurrency market, but to the spread of a lawless zone, resulting in the paradoxical situation of Bitcoin (BTC) prices plummeting from their peak.

According to crypto media 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 lost trust in the industry and widespread scams.

Following Gensler's resignation, the market saw a free-for-all where influencers and politicians vied to launch memecoins and daily rug pulls targeting their followers. This behavior hindered the efficient allocation of capital and created the side effect of liquidity flowing only into speculative assets rather than strengthening the ecosystem. The cheers for deregulation, ironically, became a turning point for entering a bear market.

Market attention is now shifting to the tenure of Federal Reserve Chairman Jerome Powell. Cowen warned that while some welcome Powell's potential removal, the current situation is a signal that history will repeat itself, similar to Gensler's resignation. The analysis suggests that if the Federal Reserve is placed 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 invariably plummeted after the last seven Federal Open Market Committee (FOMC) meetings. It is highly likely that the pattern of prices rising just before the meeting, absorbing high-point liquidity, and then undergoing a significant correction of around 13% will repeat this time.

Currently, Bitcoin is trading just below 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 is at its peak, and investors are focusing on the actual restoration of market confidence rather than mere optimism.

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