Fed’s Waller: Crypto Euphoria Fades as BTC Trades Near $69K; Fed to Pilot ‘Skinny’ Master Accounts
Federal Reserve governor Chris Waller said the post-election crypto enthusiasm driven by the Trump administration has faded, and cryptocurrency markets are increasingly integrated with traditional finance. Waller attributed recent selling pressure to traditional financial firms rebalancing risks amid delayed crypto market-structure legislation in Congress. Bitcoin has fallen from an October peak near $125,000 to trade around $69,000, briefly dropping under $60,000; indicators show a continued downtrend with RSI in oversold territory. Waller also announced the Fed will introduce “skinny master accounts” this year — limited payment accounts for fintech and crypto firms with caps and no interest — to support faster payments while preserving financial stability. The article highlights ETF inflows (Bitcoin ETFs +$144.9M, Ethereum ETFs +$57M on Feb 9) and Binance’s SAFU adding 4,225 BTC (about $300M) as accumulation signals during the decline. Key technical levels: immediate resistance near $70.9K and support near $62.9K–$68.3K. The commentary notes market volatility is inherent to crypto and recommends traders consider ETF flows and institutional balance-sheet moves when sizing positions.
Bearish
The net effect is bearish. Waller’s remarks signal reduced retail euphoria and increased influence of traditional financial firms rebalancing exposure — a common driver of downward pressure when institutions take profits or cut risk. Bitcoin’s sharp decline from a $125k peak to ~ $69k, recent intraday breaches below $60k, and a low RSI indicate persistent selling momentum and oversold conditions that can prolong volatility. While ETF inflows (Bitcoin ETFs +$144.9M) and Binance SAFU’s addition of 4,225 BTC are supportive accumulation signals, they have so far been insufficient to reverse the downtrend. The Fed’s introduction of limited “skinny master accounts” is a structural positive for long-term institutional access, but the short-term market response is mixed — increased participation can raise liquidity but also prompt rebalancing and flow-driven volatility. Historically, declarations of greater institutional integration (e.g., previous ETF approvals or major custody additions) initially coincide with pullbacks as institutions optimize portfolios before building positions. Therefore, expect continued short-term downside risk and choppy trading around the $62.9K–$71K range; monitor ETF flows, on-chain accumulation (exchanges’ reserve changes), and regulatory/legislative developments for signs of stabilization or renewed buying in the medium to long term.