Bitcoin’s recent rebound has hit a roadblock as regulatory scrutiny continues to cast a shadow over the cryptocurrency market. The upcoming expiration of BTC options this week adds to the uncertainty, with the possibility of pushing the Bitcoin price below the $26,000 mark.
The failed retest of the $27,400 resistance on June 6 signaled a loss of investor confidence following the recent regulatory actions taken by the U.S. Securities and Exchange Commission (SEC) against major exchanges such as Binance and Coinbase. Both exchanges are facing multiple lawsuits, accusing them of operating as unregistered securities brokers.
Critics, including Blockchain Association CEO Kristin Smith and crypto analyst Will Paige, argue that the SEC is bypassing formal rulemaking processes and lacking public engagement. The absence of a regulatory framework has led the SEC to enforce regulations through litigation, further adding to investor concerns.
Investors are pinning hopes on the U.S. Financial Services Committee hearing scheduled for June 13, seeking potential clarity in the regulatory landscape.
The SEC’s actions have sparked debate, even within the U.S. legislature, with Senator Bill Hagerty accusing the SEC of overstepping its authority and “weaponizing their role.” The controversy surrounding the SEC’s approach has highlighted the potential for decentralized finance (DeFi) to function independently from centralized exchanges.
Recent data shows a significant increase in trading volumes across decentralized exchanges (DEXs), with a staggering 444% surge between June 5 and June 7. Concurrently, Binance experienced net outflows of $778 million, indicating a shift in trading activity towards decentralized platforms.
While Bitcoin struggles to reclaim the $27,000 support level, the upcoming $670 million weekly options expiry on June 9 adds to the market’s challenges, potentially amplifying volatility and affecting price movements.