Maxime Seiler of STS Digital identifies institutional options selling, AI investments, and delayed U.S. regulations as obstacles for bitcoin.
By Will Canny, AI Boost|Edited by Sheldon Reback Jul 31, 2026, 3:00 p.m. 3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Three significant barriers are hindering crypto's potential for a bull run, according to STS Digital CEO. (Yashowardhan Singh/Unsplash)SummaryShow- Maxime Seiler, CEO of STS Digital, highlights that institutional volatility-selling, AI investments, and stalled U.S. crypto legislation are pressuring crypto prices.
- He notes that while traditional financial entities are rapidly adopting blockchain, much of the value is benefiting established players rather than crypto tokens.
- Seiler asserts that a future crypto rally will hinge on regulatory clarity, a more accommodating monetary policy, and greater institutional adoption of continuous trading systems.
According to Maxime Seiler, CEO of STS Digital, the crypto market is facing three significant challenges that are limiting price increases: institutional options selling, a shift of capital towards artificial intelligence, and delays in U.S. cryptocurrency regulation. Despite Wall Street's growing acceptance of blockchain technology, these factors are suppressing digital asset prices.
Bitcoin BTC$62,670.03, the leading cryptocurrency, has experienced a downturn of over 25% this year, even with unprecedented institutional interest in blockchain technology. Seiler claims that the market has yet to fully reflect the swift adoption of this technology within traditional financial sectors.
"The past four years have shown record levels of institutional engagement with crypto and digital assets," Seiler stated in a conversation with CoinDesk. "What’s shifted in the last two years is that institutions are increasingly leveraging blockchain to modernize financial markets for 24/7 operations."
He elaborated that banks, exchanges, and brokers are navigating the complexities associated with continuous trading markets, such as clearing and settlement processes. Companies like Kraken and Coinbase (COIN) are leading this transition by expanding their offerings beyond cryptocurrencies into a wider array of financial services.
However, Seiler pointed out that much of this adoption benefits traditional financial institutions rather than the holders of crypto assets. As the traditional finance sector integrates blockchain into its operations, the anticipated value for direct crypto investments has not materialized as investors had hoped years ago.
Founded in 2021, STS Digital operates as a regulated crypto options market maker in Bermuda, offering round-the-clock liquidity and pricing for institutional clients engaged in digital asset derivatives. The company focuses on over-the-counter (OTC) trading.
AI and Regulation: Additional Challenges
Artificial intelligence represents another hurdle for crypto growth, as investor excitement has shifted attention and capital away from cryptocurrencies, according to Seiler.
Significant advancements involving companies like OpenAI, Anthropic, and the SpaceX (SPCX) IPO have made AI the primary narrative for market growth, he noted.
Furthermore, delays in U.S. legislative efforts regarding market structure, such as the Clarity Act, are also dampening market sentiment. Seiler believes that establishing regulatory certainty would facilitate a quicker transition for traditional finance into continuous trading and settlement, while fostering a more favorable environment for digital assets.
Options Selling Limits Volatility
Seiler also indicated that the rapid growth of the institutional crypto options market is contributing to reduced volatility in bitcoin's price.
Bitcoin’s implied volatility has been unusually low recently, with the BVIV Index, which measures expected 30-day volatility from bitcoin options, dropping to the mid-30% range, marking some of the lowest levels seen in this cycle before beginning to rise in July.
“A volatility sell imbalance creates a reflexive loop,” he explained.
The unprecedented levels of options selling by funds, market makers, and other institutional players have established a feedback mechanism where collecting option premiums incentivizes further volatility-selling, which compresses both implied and realized volatility.
This has effectively limited bitcoin's trading range, constraining the significant price rallies that have characterized earlier market phases, while leaving the cryptocurrency more vulnerable during broader market declines. Over the past month, bitcoin has traded within a relatively narrow range of $60,000 to $66,000, with multiple attempts to break through resistance or support failing to gain traction.
"There is considerably less interest in directional bitcoin trading compared to several years ago," Seiler observed. "The increase in institutional options selling is narrowing the trading range."
Despite the subdued market conditions, Seiler mentioned that STS Digital is in a phase of expansion.
The company received its full Class F license this year after successfully navigating the regulatory landscape in Bermuda, allowing it to expand beyond the limitations of earlier licenses.
According to Seiler, the firm has quadrupled its bitcoin option notional volumes over the last year, attributing this growth to its enhanced regulatory status and rising institutional activity.
Need for Catalysts
Looking forward, Seiler believes that significant upward movement in the crypto markets will require several factors to converge, including regulatory clarity, wider institutional implementation of continuous trading systems, and a more favorable macroeconomic environment, which could involve interest rate reductions or renewed monetary easing.
While he does not anticipate these conditions emerging in the near term, Seiler argues that the market is undervaluing both the rate of institutional adoption and the speed at which traditional finance is incorporating crypto infrastructure into global capital markets.
Read more: Cantor says bitcoin bear market may be entering final stretch
Crypto TradingExclusiveSTS Digitalcrypto optionsRegulationBitcoin NewsAI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.Related AssetsBitcoin$62.670,033,07%Latest Crypto News- 1Quantum computing nears commercial breakthrough, IBM CEO says21 minutes ago
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