Bitcoin holds its ground at $30,000, leaving many baffled as the bulls seemingly take back control of the market amidst a whopping $715 million BTC options expiry. This comes after some negative regulatory pressures have eased, particularly with the SEC’s temporary agreement with the Binance exchange.
The spike in Bitcoin’s value caught many traders off-guard, leading to $125 million in liquidations of leveraged short futures contracts. Cathie Wood, CEO and chief investment officer of ARK Invest, has expressed a bullish stance on Bitcoin’s price, explaining that even in a deflationary environment, the cryptocurrency can still outperform due to its ability to offer a solution to the traditional financial system’s counterparty risk.
However, while the bulls have the advantage on paper, bears are strategizing to take advantage of the multiple Bitcoin ETF applications. With big players like Blackrock and WisdomTree submitting applications for regulatory approval, skepticism still looms over these developments, threatening to drive the market into further turmoil.
The ongoing Binance exchange investigation in France is another causing concern for the bulls. The Paris Prosecutor’s Office has reportedly cited “acts of illegal exercise of the function of a service provider on digital assets (PSAN) and acts of aggravated money laundering.”
It’s clear that cryptocurrency regulatory risks play a significant role in the outcome of the weekly expiration. For the bulls to maintain their edge, they must take full advantage of any profits gained at the $28,000 support level.
Despite the recent surge in Bitcoin’s price and the potential inflow of institutional investors, it’s important to remain cautiously optimistic given the volatile nature of the market and increased regulatory scrutiny. Whichever side capitalizes on the current situation will have a significant impact on the future performance of the digital currencies and overall stability of the market.
Source: Cointelegraph
