Fed’s Waller Shrugs Off Bitcoin Volatility, Says Crypto Crashes Don’t Threaten Banks

Bitcoin Magazine Fed’s Waller Shrugs Off Bitcoin Volatility, Says Crypto Crashes Don’t Threaten Banks Federal Reserve Governor Christopher J. Waller downplayed risks from bitcoin and broader crypto markets on Monday, arguing that digital assets remain largely disconnected from the traditional financial system even as the technology behind them moves into the mainstream. Speaking at an event hosted by the Global Interdependence Center, Waller framed crypto markets as an extension and competition of everyday commerce rather than an entirely new phenomenon. His comments come as crypto markets continue to grapple with regulatory uncertainty in Washington and recurring bouts of volatility that have shaped investor sentiment for years. While bitcoin has become more embedded in institutional portfolios, Waller suggested that price swings remain part of the market’s character rather than a systemic concern. “Ups and downs in the crypto world have become so common they actually have a name for them: winters,” he said. “It’s part of the game.” Waller dismissed recent declines in bitcoin’s price as less dramatic when viewed through a longer lens, noting that levels once considered extraordinary are now treated as routine. “People like, oh my god, bitcoin’s down to 63,000,” he said. “Eight years ago, if you just said it was 10,000 you would have said, oh my god, this is crazy.” JUST IN: Federal Reserve Governor Christopher Waller says Bitcoin volatility is just "a part of the game.""It's happened before. Bitcoin is down to $63,000. Eight years ago if you would have said it was $10,000, you would have said this is crazy!" pic.twitter.com/fTgZrHlaYY— Bitcoin Magazine (@BitcoinMagazine) February 9, 2026 The Fed governor also pushed back against the idea that crypto volatility poses immediate threats to banks or the broader payments system. In his view, crypto remains a separate ecosystem that can experience sharp crashes without triggering spillovers into traditional finance. “...