The price of Bitcoin has been swinging between the support levels of $46,000 and $52,000 for the last 26 days. Now, despite the large nominal year-end options expiry of $6.1 billion, the bearish and bullish instruments seem to be pretty evenly balanced between the sums of $44,000 and $49,000.
Therefore, it should come as no surprise that the price range of $47,175 on the 31st of December did not manage to bring in little change to the existing price structure. Even the rally of 3% to $48,500 following the event couldn’t sustain itself, which signaled that most of the bears were quite unwilling to concede their upper hand.
Bitcoin Sees Problem From Government Regulation
It is entirely possible that market bulls have gone ahead and interpreted the 9,925 tokens of Bitcoin leaving Coinbase in the last 24 hours as a positive trigger, considering there were extremely few coins that were available on exchanges for newcomers. Besides, the first week of the year has been quite positive for the past four years, as they averaged around 18.5% gains for holders of this cryptocurrency.
In an effort to further support the thesis of the market bulls, MicroStrategy, a listed tech company in the country added another 1,914 Bitcoin tokens to their balance sheet on the 30th of December. On the other side, regulation from the government has continued to put pressure on the markets with several South Korean exchanges requiring users to verify their third-party wallet addresses in order to comply with the Financial Action Task Force travel rule guidelines.
Now, despite the short-term bearishness that has come up behind the price drop in December, Bitcoin has been vastly outperforming both gold and the US Stocks for the third year in a row.