Cryptocurrencies Mixed As U.S. Traders Return To The Office

It has been a choppy day on the cryptocurrency markets, with the major coins reversing early gains. At the midway point of the American session, Bitcoin BTC (-2.14%), Ethereum ETH (-3.04%), and Litecoin LTC (-3.08%) are all in the red. In addition, Ripple XRP (-1.49%) is currently testing the vaunted $1.00 handle.

Today has brought another lawsuit from the U.S. Securities and Exchange Commission (SEC), this time toward BitConnect. The SEC has charged five members of BitConnect’s promotion network with running a $2 billion ponzi scheme. Claims against the group stemmed from commissions earned from 2017/18, a period in which the operation proved especially active. While this case isn’t of the magnitude of the SEC vs Ripple, it is making waves in the cryptocurrency markets. Ultimately, it shows that the SEC, IRS, and U.S. government is committed to stepping up efforts toward regulating cryptocurrencies.

For Bitcoin, the area from $35,000 to $40,000 is proving to be a hotly contested range. And, as the SEC continues to get involved in the cryptosphere, the price of BTC may continue to trade in this value area.

Cryptocurrencies Fade From Early Gains

May was certainly a challenging month for cryptocurrencies. One has to wonder if June will bring better fortunes for those long cryptos.

Overview: As we head toward the second half of 2021, it looks like the U.S. government is committed to boosting regulations in cryptocurrencies. The SEC is becoming active, with yesterday’s filing against BitConnect being the latest example. At the end of the day, regulations bring bearish action to cryptos. If this type of thing is the new norm, we may have already seen the high water mark for cryptocurrencies in 2021.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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