Despite the recent regulatory difficulties faced by the cryptocurrency market, including stern intervention from the US Securities and Exchange Commission (SEC) towards Binance and Coinbase, Arthur Hayes, the former CEO of BitMEX and a prominent cryptocurrency expert, forecasted a positive outlook for Bitcoin (BTC), the largest cryptocurrency.
“Fear Wall Surpassed”
In a tweet sent recently, Hayes announced that the “fear wall has been surpassed,” urging followers to join the Bitcoin “bull market bus.” His statement came right after a turbulent period during which BTC dropped over 6% in the first two days of the week, sliding from the June 4 peak of $27,455 to almost $25,600.
Hayes’ optimism, given his recognized status in the crypto industry, offers a strong signal of hope amidst a shaken market. Nevertheless, BTC and altcoin prices are experiencing high volatility following news of SEC lawsuits against two leading exchanges, Binance and Coinbase, causing serious concerns among investors. Despite market fluctuations, Bitcoin displayed strength on June 6, rising over $27,000. At the time of writing, Bitcoin’s recovery to $26,536 suggests that some investors maintain confidence in the largest cryptocurrency, even amidst uncertainties.
Lawsuit Outcomes to Directly Impact the Crypto Market
However, if the SEC wins its lawsuits against the crypto exchanges, it could signify a crucial turning point for the crypto sector. SEC accuses Binance of improperly managing customers’ funds and directing US customers to trade on its platform, while Coinbase faces charges for trading cryptocurrencies that should have been registered. Importantly, a US court approved the SEC’s request to temporarily freeze the assets of two Binance subsidiaries in the US, BAM Management and BAM Trading.
The decisions of these lawsuits carry significant weight for the regulation and future of cryptocurrency markets. If the courts agree with the SEC’s allegations and decide many cryptocurrencies should indeed be considered as securities, this will fundamentally change how cryptocurrencies are regulated, granting the SEC authority over crypto regulation and control in the US.