Bitcoin Price Rallies to End Month Around $940
Despite regulatory headwinds and growing concerns about Mt. Gox, the price of Bitcoin shows remarkable strength, ending a volatile month near its all-time high.
After a month of incredible news—both positive and negative—the price of Bitcoin demonstrated significant resilience, closing out January around the $940 mark. This strong finish occurred despite the arrest of Charlie Shrem, warnings from the Russian central bank, and the increasingly severe withdrawal problems at Mt.
Gox. The price was buoyed by the overwhelmingly positive news on the merchant adoption front, led by Overstock and TigerDirect, and the major vote of confidence from Andreessen Horowitz's investment in Coinbase. This divergence created a tense market environment, pitting the bullish narrative of mainstream adoption against the bearish fears of regulatory crackdown and exchange insolvency.
The high price reflected a market that was, for the moment, choosing to focus on the positive developments. In retrospect, this end-of-month rally represented the final peak of market optimism before the Mt.Gox crisis would escalate in February and send the price spiraling downwards, marking the true beginning of the 2014 bear market.