Fed's Waller: Trump-Induced Crypto Euphoria Starting to Fade

Remember the wild post-election surge in crypto? Bitcoin and altcoins rocketed on dreams of a pro-crypto White House. Now, a top Federal Reserve voice is calling it: that high is wearing off. Governor Christopher Waller just dropped a reality check, linking the buzzkill to stalled regulations and fresh market jitters.

Waller didn't mince words during recent remarks. He pointed straight at the optimism sparked by the Trump administration's arrival. Investors piled in, betting on friendlier policies. But months later, the shine is dulling. The culprit? Regulatory limbo. Waller highlighted the stalled Clarity Act, a bill meant to bring clear rules for digital assets. Without it, market players are hesitating. 'That delay has cooled some enthusiasm,' he essentially conveyed. Then there's the TradFi angle. As mainstream finance firms ramp up crypto exposure, they're playing it safe. Recent selloffs? Not crypto fundamentals crumbling, but these institutions tweaking risk postures amid volatility. Waller shrugged it off: markets swing both ways—get used to it or stay out. This comes as crypto ties deepen with traditional systems. Stablecoins and DeFi are blending worlds, but without rules, every dip feels amplified. Waller's take underscores a shift: from pure hype to pragmatic integration.

The timing couldn't be worse—or more telling. Crypto's post-election rally has reversed hard. Bitcoin, once eyeing new highs, has shed over 40% from peaks. Ethereum and others followed suit, dragging the total market cap into correction territory. Waller's comments spotlight why: waning optimism meets real-world friction. TradFi inflows fueled the boom; now their caution sparks outflows. Spot ETFs, once heroes, see redemptions. Altseason dreams? On ice amid uncertainty. Broader ripples hit risk assets. Stocks wobble, yields tick up. If Fed signals stay dovish elsewhere, crypto might decouple—but for now, it's chained to policy hopes.

Waller's candid view cuts through the noise: crypto's Trump bump was real but fragile. True staying power demands clarity, not just cheerleading. Eyes on Congress for that Clarity Act or similar. Until then, expect bumps. Yet volatility breeds opportunity—savvy players know prices climb as often as they crash. The market's maturing; buckle up for the next leg. Sources: @CryptoNewsHntrs, Bloomberg, Cointelegraph, Investing.com.