Powell Steps Down as Chair of the Federal Reserve: Crypto Braces for a Liquidity and Regulation Paradigm Shift

Powell will officially step down as Chair of the Federal Reserve, with Kevin Waugh taking over. This transfer of power will reshape crypto liquidity, regulatory direction, and pricing logic—short-term shocks, medium-term reshuffling, and long-term reconstruction of the industry’s ecosystem.
During Powell’s tenure, monetary policy was directly tied to crypto bull and bear cycles: easing policies helped nurture the 2021 bull market, rate hikes triggered the 2022 bear market, and later, modest rate cuts pushed crypto prices to rebound. His “data-dependent” style left the crypto market with a policy buffer zone.
In the short term, policy uncertainty will intensify volatility in the crypto space. The new chair’s taking office will most likely lead to short-term pullbacks in BTC and ETH, but Powell’s continued presence as a member of the board can help check aggressive policies and prevent panic-driven crashes.
In the long run, the Waugh era will bring three major changes: on the liquidity front, “rate cuts + balance sheet reduction” will proceed in parallel, with capital concentrating in leading assets like BTC and ETH; on regulation, the approach will shift toward compliance-friendly measures, lowering the entry threshold for institutions while cracking down harder on gray areas; and the market will move into an institutional pricing era, with volatility becoming more rational.
Trading advice: In the short term, strictly control position size, and lightly trade with buy-low/sell-high in the BTC range of 73,000–79,400 and the ETH range of 2,200–2,380. In the medium term, allocate to BTC, ETH, and compliant projects while avoiding low-quality altcoins. In the long term, embrace compliance, and anchor to the value of core assets.
Powell’s stepping down is the starting point for the crypto industry to say goodbye to barbaric growth. Waugh will drive the crypto market into a new era led by institutions and driven by compliance. After short-term pains, the long-term opportunities for core assets will stand out even more. #美联储利率不变但内部分歧加剧 $BTC $ETH