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The Death of Bitcoin

Posted June 01, 2026

Davis Wilson

By Davis Wilson

The Death of Bitcoin

There’s a bizarre Bitcoin pattern almost nobody talks about.

And as of last week… it may be starting again.

If history repeats itself, Bitcoin could plunge double digits from here.

Take a look at this chart:

The Bitcoin/Fed Chair Crash Pattern

Crash pattern

The blue vertical lines mark leadership changes at the Federal Reserve.

What happened after each of those changes is shocking.

After Yellen took over, Bitcoin collapsed 83%.

After Powell became Chair, Bitcoin fell 73%.

Then during Powell’s second term, Bitcoin crashed another 60%.

And now?

Bitcoin has already fallen from around $77,000 to $71,300 since Warsh became Fed Chair on May 22.

So naturally, the question becomes:

Is another massive Bitcoin crash beginning right now?

It certainly looks that way…

But I also think it’s important to understand what this chart is actually showing.

I don’t believe Federal Reserve Chairs themselves somehow “cause” Bitcoin crashes.

The more likely explanation is that Bitcoin is deeply tied to liquidity and investor psychology.

When money is cheap and financial conditions are loose, investors pour into speculative assets like crypto.

When the Fed tightens policy or liquidity dries up, risk assets usually get crushed.

And leadership changes at the Fed often happen during these broader monetary transitions.

So the blue lines don’t necessarily represent some strange Bitcoin curse.

They simply signal the beginning of a new monetary regime.

And historically, these periods have been painful for crypto.

Still, there’s one major problem with betting against Bitcoin.

It refuses to die.

Think about everything Bitcoin has already survived.

  • Gox.
  • The 2017 bubble collapse.
  • Regulatory crackdowns.
  • Exchange failures.

Every single cycle feels like the end.

And every single time, Bitcoin somehow survives.

Not only that… it keeps getting bigger.

Today:

  • Public companies hold Bitcoin on their balance sheets.
  • Spot Bitcoin ETFs exist.
  • Wall Street firms offer crypto products.
  • Stablecoins move billions of dollars daily.
  • Entire companies, technologies, and financial infrastructure layers have now been built around crypto.

Love it or hate it, Bitcoin is no longer some fringe internet experiment.

It has become a legitimate global asset class.

That doesn’t mean Bitcoin can’t fall from here.

It absolutely can.

Bitcoin remains one of the most volatile assets on earth.

But my recommendation for owning Bitcoin remains the same.

Investors should treat crypto similarly to assets like gold, stocks, and bonds – as a deliberate allocation inside a diversified portfolio.

I typically recommend 5%-10% of investable assets.

Because despite every crash, scandal, fraud, and Fed Chair change… the asset has continued climbing over time.

This time is no different.

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