Remember how last week the crypto market literally collapsed? Bitcoin dropped below 92,000, Ethereum broke through 3,200. Four hours of liquidations totaling 593 million—mainly closing long positions. They called it Black Monday, and not without reason.

This whole story revolved around speculation about the new head of the Fed. Kevin Warsh— a well-known hawk in financial circles—was considered as a replacement for Powell. The market doesn’t like such uncertainty, especially when it concerns a key figure in monetary policy. Plus, the speculation was fueled by Trump’s aggressive stance on trade: a 10% tariff on European goods—that’s something.

Adding to this was another problem. The CLARITY bill, which was supposed to bring clarity to crypto regulation, got stuck in the Senate. Speculation about what will happen next with regulation further pressured the market. All these factors together created a perfect storm.

Interestingly, now the situation looks different. Bitcoin recovered to 78,000 with a gain over the day, and Ethereum also rose. But the lesson remains—the speculation around macroeconomics and politics continues to be one of the main drivers of volatility in the crypto market.