Crypto market under pressure: trade dispute and SEC cause uncertainty!

Crypto market under pressure: trade dispute and SEC cause uncertainty!

The crypto market is currently under significant pressure caused by a combination of geopolitical tensions and regulatory uncertainties. The US-China trade conflict has negatively impacted the prices of cryptocurrencies such as Bitcoin and XRP. The US Securities and Exchange Commission (SEC) has dropped several cases against major crypto companies, but remains in conflict with Ripple Labs. This uncertain situation contributes to market volatility.

On May 30, 2025, the Bitcoin price fell by 1.51% to $104,068, after falling by 2.01% the previous day. These declines are partly due to outflows in the BTC spot ETF market, which saw net outflows of $346.8 million after ten days of inflows. The ARK 21Shares Bitcoin ETF and the Bitwise Bitcoin ETF were particularly affected. Future developments, particularly US Federal Reserve signals and legislative actions, are expected to continue to influence Bitcoin prices.

Regulatory uncertainty in the crypto market

Despite the difficulties experienced by the Bitcoin price, the SEC has a mixed reaction to the crypto industry. While cases against companies like Coinbase and Uniswap Labs have been dropped, Ripple remains in the SEC's focus. The dispute over XRP's classification as a security drags on, with the SEC arguing that the contracts for the sale of XRP involve unregistered securities. However, Ripple had previously won a partial victory when a judge ruled that XRP was not a security in secondary markets. This uncertainty is affecting the price of XRP, which has fallen almost 30% since the resignation of SEC Chairman Gary Gensler on January 20, 2025, despite previously rising 540% following Donald Trump's re-election.

US President Trump has accused China of breaking trade war agreements, sparking concerns about possible retaliation from Beijing, particularly in the rare earths sector. These geopolitical tensions could also have a direct impact on the crypto market as demand for Bitcoin and other digital currencies declines.

Future developments and possibilities

The short-term development of the Bitcoin price depends heavily on possible signals from the US Federal Reserve, legislative setbacks and further ETF inflows. While rising trade tensions, hawkish signals from the Federal Reserve and further ETF outflows could put renewed pressure on prices, there are also factors that could lead to stabilization or even an increase, such as easing trade relations or bipartisan support for crypto laws.

In addition, the Bitcoin Act proposal is being discussed, which aims to procure one million BTC by the US government within five years. It remains to be seen to what extent such developments will have an impact on the market.