Bitcoin Price Falls Despite Gensler's Departure and Fed Interest Rate Decision

The departure of Gary Gensler from the US Securities and Exchange Commission (SEC) in January 2025 was met with expectations of improved regulatory conditions for cryptocurrencies. However, this expectation has not been met, as Bitcoin's price has fallen sharply since his exit. Analyst Benjamin Cowen suggests that market participants have lost faith in the industry itself, leading to a decline in its value. The departure of Gensler marked the beginning of a period characterized by the launch of memecoins and rug-pulling schemes, which led to a massive misallocation of capital and the erosion of trust in the industry.

Additionally, analysts point out that the Federal Reserve's upcoming interest rate decision may follow a similar pattern to previous FOMC meetings. A crypto trader known as Max Trades noted that following each of the last seven FOMC meetings, Bitcoin dropped sharply after the decision was announced. This could potentially lead to another local top in Bitcoin's price around this event.