- Gary Gensler, chair of the US Securities and Exchange Commission hinted at tough times for the crypto industry.
- Zero knowledge narrative gained relevance with altcoin price rallies and Bitcoin’s recent pullback.
- Whales are taking profits in Bitcoin, slowing down the asset’s price rally.
US financial regulators toughened their stance on cryptocurrency exchanges and assets. Despite the regulatory crackdown, Layer 2 coins, Zero Knowledge (zk) coins witnessed price rallies.
Bitcoin’s price rally slowed down as large wallet investors engaged in profit taking.
Also read: Ethereum price gears up for rally ahead of ETH token unlock and “re-staking” narrative
US SEC crackdown on crypto intensifies
US SEC chair Gary Gensler intensified regulatory crackdown on virtual assets. In his testimony before the House Appropriations Subcommittee on Financial Service and General Government, Gensler called for new tools and expertise to tackle the misconduct in the crypto industry.
Gensler describes crypto as “the Wild West,” implying that it is rife with noncompliance and investors’ capital is at risk in the asset class. The US SEC received over 35,000 tips and complaints in FY 2022 and booked over 750 enforcement actions, despite limited resources.
Regulatory crackdown has intensified the pressure on cryptocurrencies and dampened sentiment among digital asset holders.
Read more: SEC Chair Gary Gensler’s latest call signals tough times ahead for crypto players
ZK coins narrative is heating up, key projects to watch out
Following the successful completion of Arbitrum’s ARB airdrop, Ethereum Layer 2 and ZK coins narrative garnered attention in the crypto community. Several projects like MATIC and IMX yielded gains for holders, while market participants were on the lookout for airdrops to farm.
Read more: Hottest ZK ecosystem coins and upcoming airdrops: ScrollZKP, LayerZero, Shardeum
Bitcoin price rally slowed down with whales engaging in profit taking
Bitcoin price climbed back above the $28,000 level before its recent pullback. According to on-chain metrics, there was a significant shift in whale activity with large wallet investors engaging in profit-taking and shedding their BTC holdings.
This is one of the key factors that likely slowed down the BTC price rally and paved the way for the alt season narrative to make a comeback in the crypto community.
Read more: Are whales slowing down the Bitcoin price rally: 73% of all BTC is profitable
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bulls target $100,000 BTC, $2,000 ETH, and $3 XRP
Bitcoin (BTC) is stabilizing around $95,000 at the time of writing on Wednesday, and a breakout suggests gains toward $100,000. Ethereum (ETH) and Ripple (XRP) followed BTC’s footsteps and hovered around their key levels.
Tether mints 3 billion USDT on Ethereum and TRON as markets stabilize
Tether ramps up its minting activity amid surging demand for stablecoins, often signaling heightened trading and liquidity needs. The issuer of the leading stablecoin by market capitalization has minted 2 billion USDT on Ethereum and an additional 1 billion USDT on the TRON network.
SEC delays decision on Franklin Templeton’s spot XRP ETF to June 2025
The Securities and Exchange Commission (SEC) has postponed its decision on Franklin Templeton’s spot XRP ETF, extending the review period to June 17, 2025. XRP traded at approximately $2.24 at press time, rising 7% over the past week, according to CoinGecko.
Trump Media announces new token launch and native crypto wallet in latest Shareholder letter
Trump Media unveils plans to launch a utility token and crypto wallet to monetize Truth Social and expand its streaming services. Markets react with a 10% drawdown on the Solana-hosted official TRUMP memecoin.
Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge
Bitcoin (BTC) price is consolidating around $94,000 at the time of writing on Friday, holding onto the recent 10% increase seen earlier this week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.