Bitcoin (CRYPTO: BTC) tapped $77,000 early Wednesday as analysts debate how the change at the helm of the Federal Reserve will impact the apex crypto.

Powell Chairs His Last Meeting

In an Apr.29 podcast, Benjamin Cowen said Bitcoin has historically performed best under loose monetary conditions.

The upcoming Federal Open Market Committee meeting is notable as it is expected to be the final one led by Jerome Powell as Federal Reserve chair, marking what Cowen described as the "end of an era."

Despite market expectations that new leadership could introduce rate cuts, Cowen argued this is unlikely in the near term.

He pointed to persistent inflation, driven in part by geopolitical tensions and rising energy prices, as a key constraint on policy easing.

Powell's tenure has spanned major economic shifts, from emergency stimulus and aggressive rate cuts to one of the fastest tightening cycles in decades. While he is credited with helping steer the economy toward a soft landing, underlying conditions remain fragile.

Fed Policy Still A Headwind

Cowen noted that markets have already pushed expectations for rate cuts further out, potentially to 2027.

Although Bitcoin and equities have remained relatively resilient, higher-risk assets such as altcoins continue to underperform under tighter monetary conditions.

He also highlighted a recurring relationship between energy prices and Bitcoin cycles. Historically, Bitcoin bottoms have coincided with peaks in energy prices.

Rising oil costs contribute to inflation, limiting the Federal Reserve's ability to ease policy and, in turn, weighing on risk assets.

While the labor market shows signs of softening, including slower hiring and rising unemployment, Cowen said it may not be weak enough yet to force immediate rate cuts.

As a result, the Federal Reserve could delay easing and risk acting too late, potentially cutting rates only after economic conditions deteriorate further.

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