Cryptocurrency
Crypto enthusiasts are wrong to target Gary Gensler
Laws in the United States are the problem. Cryptocurrency advocates should focus on changing them — and, in the meantime, consider moving to the European Union.
The animus of the entire crypto world is focused on Securities and Exchange Commission Chair Gary Gensler.
Critics argue that he paints cryptocurrencies with too broad a brush. They argue that he gaslights well-meaning entrepreneurs by encouraging them to “come in and register,” knowing his process is set up for them to fail. They argue he knows new rules are needed but prefers to enforce impractical rules in order to stifle the industry altogether. And, of course, under his leadership, the SEC filed an enforcement action against Coinbase, arguing several top coins, including Polygon’s MATIC, Solana’s SOL and others are securities largely because their issuance involved capital formation, despite their necessity in operating underlying networks.
And it’s not just naysayers in the peanut gallery. The campaign is costing the United States dearly. Venture capital investment in the U.S. crypto industry has fallen this year compared to the European Union. America is losing its lead, and time is of the essence.
The cynical explanation for Gensler’s position is political. Gensler taught a course on blockchain at MIT and is on tape explaining how not all tokens are securities, so he presumably understands the nuances of digital assets. Rather, he is playing dumb to implicitly support the agenda of Massachusetts Senator Elizabeth Warren, who is mobilizing an “anti-crypto army” and has been informally deputized by the administration of President Joe Biden to define crypto policy. If Biden wins the presidency again, perhaps this will help Gensler earn an appointment as Treasury secretary.
In response, lawmakers are piling on with bills proposing to fire him. Representatives Warren Davidson and Tom Emmer introduced the “SEC Stabilization Act,” which proposes removing Gensler and restructuring the agency to make it less partisan.
This would be misguided — not because Gensler is in the right, but because his positions are not clearly wrong under current law.
The U.S. approach to securities law relies on the Howey test, which asks whether buyers have an “expectation of profit to be derived from the efforts of others.” Of course, buyer expectations can be influenced by but are not entirely in the issuer’s control. They might also be affected by trends in the market, groupthink or even whimsy. The benefit of this approach is that it is hard to game. But the cost is a “Schroedinger’s cat” paradox, wherein the very act of perception by third parties determines whether a token is a security or not. This deters capital formation by imposing enormous risk on entrepreneurs and users that is inherently out of their control.
This paradox is put in relief by the EU’s landmark Markets in Crypto-Assets (MiCA) legislation. The regulation acknowledges that utility tokens are not all financial instruments and prescribes clear and practical requirements for disclosure and behavior that legitimate projects are able to follow.
The EU defines securities based solely on factors in the control of the issuer, namely the structure of an instrument itself and the way it is marketed. This explains how MiCA so cleanly allows for utility tokens while the U.S. struggles with simply defining them.
This difference really matters. For example, imagine you are an entrepreneur issuing a governance token for a protocol that entitles holders to vote for changes to open-source software. In the EU, under MiCA, you can publish a transparent white paper and do your best to dispute any mischaracterizations. In the U.S., you can do the same, but you have no guarantee it’s enough.
If bad actors have conditioned buyers to expect profits from tokens writ large, you may be stuck. And since every new wave of technology gets hijacked by bad actors like Sam Bankman-Fried, there will always be bad actors who condition buyers when capital formation is most important for driving society forward.
As a result of the U.S. paradox, firing Gensler might provide temporary relief, but it would not necessarily solve the problem — which is a lack of clarity and adaptability. There is no guarantee that Gensler’s replacement will necessarily reach a different conclusion.
The only comprehensive solution is new legislation that refines the U.S. definition of a security or carves out a separate framework for digital asset issuers and exchanges. Until we see serious efforts at that, a sword of Damocles will forever hang over the U.S. crypto space, always just one election or chair away from being cut.
TL;DR
- Although bitcoin’s price tumbled by over 20% since its January all-time high and is currently nowhere near it, a crucial metric shows that the actual cycle peak is not here yet.
- In terms of entry prices, though, one analyst cautioned that the current levels might not be optimal.
No Peak Yet?
After hitting an all-time high on January 20 this year at over $109,000, bitcoin’s price started to lose value gradually until the end of the month and then nosedived following the global economic uncertainty prompted by US President Trump’s controversial approach.
The culmination came last week when BTC tumbled below $75,000 for the first time in five months. This meant that the asset had lost nearly $35,000 in less than three months.
This split the community into those who believe the bull market has come to a screeching halt and those who rely on history to be more optimistic, suggesting that such substantial corrections have occurred during all previous cycles. But there are only that—corrections, and BTC will persevere.
Ali Martinez, a crypto analyst with over 135,000 followers on X, brought another key metric that could support the latter. It still relies on historical performance, but it’s not focused on the technical aspects. Instead, it measures the retail activity as BTC tends to peak after a massive influx of such investors.
So far, there hasn’t been a big retail wave. This is evident from the lack of Google searches as well as the missing “retail activity through trading frequency surge.”
#Bitcoin $BTC market tops have historically aligned with surges in retail activity. The move from $70,000 to $110,000 lacked that, echoing the late 2021 setup. pic.twitter.com/rVJPUTpXZC
— Ali (@ali_charts) April 18, 2025
Martinez noted that the current cycle resembles the 2021 run when BTC peaked in April, only to break that high at the end of the year.
Don’t Rush to Buy
Although history suggests there might be more gains on the horizon for BTC, Martinez published another chart that suggests investors should maybe be more patient before allocating funds to the largest digital asset.
This is because of the Bitcoin Exchange inflow volume, a metric used to “spot strong entry points.”
#Bitcoin $BTC exchange inflow volume momentum is a key metric for spotting strong entry points. For now, it’s signaling patience. We’re still waiting for the right opportunity to step in. pic.twitter.com/NSS1fZcHMl
— Ali (@ali_charts) April 19, 2025
This essentially confirms a previous report by Glassnode, which read that the BTC market is now in a “wait-and-see” phase.
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Bitcoin is slowly pushing higher, aiming to reclaim the 200-day moving average, but the price remains stuck below it. Considering the futures market sentiment, the next breakout or rejection could spark major volatility.
Technical Analysis
The Daily Chart
As the daily chart suggests, BTC has managed to recover from the March sell-off and is now trading just below the 200 DMA, located around the $88K mark, which is acting as a strong dynamic resistance. The recent structure shows short-term higher highs and lows, but the price is still capped below the $88K level.
The buyers need a clean daily close above this zone and the 200-day moving average to open the door toward $92K and eventually, the $100K level. If the price gets rejected again, the $80K region will be key for maintaining a recovery structure.
The 4-Hour Chart
On the 4-hour timeframe, Bitcoin has broken above the long-term descending trendline and is consolidating just below the $86K–$88K supply zone. The structure shows higher highs and higher lows, indicating bullish momentum.
However, the price action has been choppy recently, with multiple rejections from the $86K area. The RSI is also gradually rising but hasn’t reached overbought yet, meaning bulls still have fuel, but they need to show conviction. A confirmed breakout above $88K could trigger a fast rally in the coming weeks.
Sentiment Analysis
Open Interest
Looking at the futures market sentiment metrics, the open interest is climbing again, now sitting around $28B as the price hovers around the $85K mark. This rising OI trend suggests growing speculative activity in the derivatives market.
Historically, sharp increases in OI during sideways or slightly bullish price action often precede major volatility. If the market breaks higher, the stacked long positions could fuel a squeeze to the upside. But if resistance holds and price reverses, a long liquidation cascade is likely. Either way, the next major move will likely be amplified by this buildup in leverage.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
While market volatility pressures Bitcoin mining firms to liquidate assets for survival, Tether is charting a different course.
In fact, the stablecoin giant has significantly deepened its involvement in the Bitcoin mining sector through a series of bold initiatives.
Bitcoin Mining and Beyond
According to a recent SEC filing, Tether has increased its stake in Bitcoin mining firm Bitdeer to 21%, capitalizing on a dip in the company’s stock price. The move marks a continued push into the mining industry, where traditional players are struggling amid stagnant BTC prices and waning investor confidence.
In a separate development this week, Tether announced plans to deploy its existing and future hashrate on OCEAN, a decentralized mining pool spearheaded by veteran Bitcoin Core developer Luke Dashjr. The company intends to implement OCEAN’s DATUM Gateway across its global mining operations, in a bid to optimize low-latency connections and generate unique block templates directly at mining sites.
This initiative is particularly focused on boosting operations in underserved regions, including rural areas in Africa. The rollout not only ensures global competitiveness through technological innovation but also aligns with Tether’s growing footprint in Africa, which includes investments in both digital infrastructure and educational programs.
In a statement, Tether CEO Paolo Ardoino said,
“As a company committed to financial freedom and open access, we see supporting decentralization in Bitcoin mining as essential to the network’s long-term integrity. Deploying hashrate to OCEAN aligns with both our mining investments and our broader mission to fortify Bitcoin against centralizing forces.”
Tether Backs Fizen’s Blockchain Infrastructure
Alongside its efforts in Bitcoin mining, Tether also announced a strategic investment in Fizen Limited, a fintech company focused on self-custody crypto wallets and digital payment solutions.
Through this partnership, Fizen aims to strengthen its blockchain infrastructure, to allow for smoother integration of stablecoins across diverse blockchain networks. The initiative is expected to improve user experience by offering a more streamlined and inclusive way to store, transfer, and transact with stablecoins, without the barriers of complex documentation or restricted access.
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