Bitcoin Tests $111K Support as Powell’s Hawkish Stance Sparks Selloff - Decenter Market Watch

Federal Reserve Chair Jerome Powell just threw cold water on the crypto rally - and Bitcoin bulls are feeling the chill.

The Pressure Cooker

Powell's unexpectedly hawkish comments during yesterday's FOMC meeting sent shockwaves through digital asset markets. Bitcoin, which had been flirting with record highs, suddenly found itself testing crucial support at $111,000 as traders rushed for exits.

The Fed's determination to maintain elevated interest rates longer than anticipated created immediate headwinds for risk assets across the board. Crypto markets, never ones to ignore macroeconomic signals, responded with characteristic volatility.

Market Mechanics Exposed

Leveraged positions unwound rapidly as funding rates normalized across major exchanges. The sudden shift caught many perpetual swap traders off guard, demonstrating once again that in crypto, the only certainty is uncertainty.

Traditional finance veterans might call this 'price discovery' - crypto natives know it as another Tuesday.

Looking Beyond the Noise

While short-term sentiment has clearly taken a hit, the fundamental case for Bitcoin remains intact. The same institutional infrastructure that propelled prices to recent highs continues to operate in the background, suggesting this dip might represent opportunity rather than catastrophe.

After all, Wall Street's favorite game remains buying when there's blood in the streets - even if they're the ones who spilled it first.

Former Robinhood lawyer to lead WLFI’s global compliance initiative

McCain brings over 10 years of expertise in financial regulation, the adoption of fintech, and the governance of digital assets. Before working at Robinhood, he served as a senior legal and compliance official at Charles Schwab, Scottrade, and Arta Finance, gaining expertise in both centralized and decentralized finance.

McCain was pivotal at Robinhood for leading complex global regulatory frontiers, such as investing powered by AI and the operation of international brokerages. The inclusion of WLFI may lend the Trump-supported project more credibility at a time when cryptocurrencies are under greater scrutiny.

McCain’s leadership will reportedly focus on the firm’s Real-World Asset (RWA) tokenization initiative, according to WLFI. This involves linking blockchain tokens to tangible assets, such as real estate, commodities, or securities backed by treasuries. This is intended to transform WLFI into a legal entity that meets the requirements and is supported by the necessary infrastructure, while also attracting institutional investors.

WLFI is in the midst of finding its audience, as highlighted by CoinGecko. The token is trading at around $0.1478, representing an increase of over 9% in the last day and approximately 17.8% in the past seven days. It’s available on a limited number of mid-tier exchanges and has been an object of interest to U.S. and international speculators seeking exposure to politically flavored digital assets.

It may be a savvy MOVE for the company to hire someone like Mack McCain, a high-profile regulatory expert, said Zak Folkman, co-founder of World Liberty Financial.

He noted being “thrilled” by the addition of someone with McCain’s level of experience in digital assets, adding McCain knows how to straddle compliance and innovation — something Folkman said is necessary as the company expands internationally while dealing with regulators across many jurisdictions.

Observers say WLFI’s most recent hire contributes to a growing trend among crypto firms to recruit compliance industry veterans in anticipation of increasingly stringent regulatory scrutiny across major markets, including the U.S. and Europe. With new frameworks emerging under MiCA in the E.U. and proposed digital asset legislation from Congress in the U.S., getting it right early WOULD enable WLFI to compete effectively, Carson said.

Investors assess market outlook and future impact

For investors, McCain’s appearance at World Liberty Financial is a sign that the company, which had an extremely political launch, is maturing. That could attract institutional partners seeking connections to compliant crypto projects.

However, uncertainty remains as people fear political risk. The project’s connection to the TRUMP brand exposes it to political risks — especially as the 2026 U.S. elections draw closer. 

It is not clear how transparent the firm is about its operations, or whether it can sustain such steep price gains. But WLFI’s regulatory stance, tokenomic architecture, and experienced management team could set it apart in the growing DeFi landscape. If the firm can establish sufficient legal credibility, it may graduate from a political fantasy token to a viable fintech reality.

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