Federal Reserve Governor Waller: The Crypto Boom Sparked by Trump May Be Fading

Federal Reserve Governor Christopher Waller stated that as a wave of sell-offs hits the cryptocurrency market, the optimism that had driven the market up following the election of U.S. President Donald Trump may now be fading.

Waller said at a conference hosted by the Global Interdependence Center in La Jolla, California, on Monday: "With the current administration taking office, there was a certain frenzy in the crypto world, part of which is now gradually dissipating."

The Federal Reserve governor noted that market ups and downs are common in the cryptocurrency space, and that recent volatility may be driven by regulatory uncertainty as well as actions taken by large financial firms for the purpose of risk management.

He said: "I think a lot of the reason for the sell-off is that companies entering from mainstream finance have had to adjust their risk positions, to sell, and there are many other factors as well."

Waller’s comments highlight how the crypto market is becoming increasingly entangled with the broader financial system. While policymakers have traditionally viewed digital assets as a marginal space or one driven by retail investors, the industry has become increasingly present on institutional balance sheets through channels such as hedge funds, institutional trading desks, and exchange-traded funds, raising its visibility in policy circles.

Bitcoin has fallen more than 40% from its October high, as part of a broader digital asset pullback. Last week, Bitcoin plunged to $60,033, its lowest level since October 2024, triggering the most significant spike in volatility since the collapse of crypto exchange FTX in 2022.

Editor: Ding Wenwu