Cryptocurrency traders were happy to see Bitcoin return to somewhat of a rally mode as the trading week started on Monday, but the climb to $40,000 did not last as long as many had hoped for. Bitcoin prices were largely green for the entire 24-hour session Monday, up more than 3% on the day before retreating to the $37,500 level. Market analysts interpreted the volatile trading session as a sign that bearish traders were still making their present known.
Part of the backwards move towards $37,500 was rooted on a cautious sentiment after interesting news came from the SEC and a tweet from the Commissioner of the Division of Trading and Markets, who announced the formation of the Bitcoin Security Task Force. The task force is set to study and monitor the nature cryptocurrency tokens that could be handled and classified as unregistered securities. This new division within the SEC will investigate digital currencies and their associated companies.
The U.S. continues to be the largest market for crypto, with some investors believing that there is an inherent conflict of interest between regulation and tokens. The SEC has been on the defensive about the lack of regulations for cryptocurrencies and there have been numerous questions on the legality of Bitcoin in the U.S. The SEC is facing pressure to enact some form of regulation on the booming industry, with investors saying that they should be allowed to hedge their Bitcoin. While the market has rebounded after last year’s slump in Bitcoin prices, the crypto market has been plagued by economic uncertainty.
Bitcoin could have fallen even lower if not for rumors that e-commerce giant Amazon is set to start accepting digital currency payments on its sizable retail marketplace. Amazon has a very wide user base in the cryptocurrency market and Amazon-enabled exchanges would attract many mainstream customers to explore and learn about bitcoin and other cryptocurrencies. According to the Wall Street Journal report, the company’s initial steps will start at select products in its Amazon.com store. The company will reportedly work with select partners to accept crypto payments as early as this September, but all this is still in the rumor stage.