STS Digital CEO Maxime Seiler says three factors are holding back the next crypto bull run: institutional options selling, artificial intelligence, and delayed U.S. regulation. In a recent assessment, Seiler laid out why these forces are creating persistent headwinds for the market.
Institutional options selling
Institutional players are increasingly selling options on crypto assets, and that's capping upside. Seiler argues that large-scale options selling by funds and banks creates a ceiling on price rallies. When institutions sell calls, they effectively bet that prices won't rise too fast — and that positioning can suppress momentum. It's a structural drag that wasn't as pronounced in previous cycles.
AI's pull on liquidity
Artificial intelligence is competing directly with crypto for capital and attention. Seiler points out that AI startups and infrastructure projects are drawing billions in venture funding that might otherwise flow into digital assets. The narrative shift is real: retail and institutional investors alike are chasing the next AI winner, leaving crypto in a relative lull. It's not that crypto is dead — it's just not the only game in town anymore.
The regulatory drag
Delayed U.S. crypto regulation is the third barrier. Seiler notes that uncertainty around SEC and CFTC rules continues to spook institutional entrants. Without clear guidelines, big money stays on the sidelines. The U.S. has been promising clarity for years, but the timeline keeps slipping. That hesitation ripples through the entire market.
Seiler's diagnosis isn't all doom — he's identifying the obstacles, not predicting a permanent slump. But the timing isn't great. The market has been grinding sideways, and these three factors help explain why.
What comes next depends on whether institutional options activity shifts, whether AI hype cools, and whether Washington finally delivers a regulatory framework. For now, the market waits.
