The market is hectic. The attention span of most investors is short. The long-term implications of one particular trend among governments the world all over has far reaching implications for the future of digital currencies. The question now is if this often overlooked factor tells us anything anything about the way the Bitcoin market behaves, the way digital currencies react to unexpected news and how to navigate the current complex short-term environment.

The factor we’re writing about is government regulation and, specifically, the alleged recent move by the SEC to target Bitcoin companies. In a Wall Street Journal article, we read:

The Securities and Exchange Commission has issued dozens of subpoenas and information requests to technology companies and advisers involved in the red-hot market for cryptocurrencies, according to people familiar with the matter.

The sweeping probe significantly ratchets up the regulatory pressure on the multibillion-dollar U.S. market for raising funds in cryptocurrencies. It follows a series of warning shots from the top U.S. securities regulator suggesting that many token sales, or initial coin offerings, may be violating securities laws.

The wave of subpoenas includes demands for information about the structure for sales and pre-sales of the ICOs, which aren’t bound by the same rigorous rules that govern public offerings, according to the people familiar with the matter. Companies use coin offerings to raise money for everything from file-sharing technology to pet passports.

We haven’t heard much from the SEC regarding Bitcoin recently, but this is important news, right? After all, it trends in the media, so it has to be important? Well, not necessarily. This depend mainly on the way traders react to such news. Let your imagination run. The government is going after Bitcoin companies. This might be the tip of the iceberg. Traders will run for the hills. Except, they haven’t.