Federal Reserve Governor Christopher Waller recently stated that optimism in crypto markets is waning, particularly following the rally driven by Donald Trump's U.S. presidential election victory.
Market Sentiment Cooling Down
Speaking at a conference in California, Waller noted that while the crypto sector experienced strong enthusiasm after the new administration took office, part of that excitement is now fading.
Reasons Behind the Volatility
He explained that market swings are common in crypto, but recent movements have been influenced by regulatory uncertainty and actions taken by major financial institutions managing risk exposure.
- Market sentiment heavily influenced by policy expectations
- Traditional finance players adjusting positions triggered sell-offs
- Regulatory environment remains key industry risk
Waller emphasized that many firms in traditional finance had to adjust their risk exposure, contributing to increased selling pressure in crypto markets.