Bitcoin's recent pullback is attributed to a combination of profit-taking and shifting global financial sentiment. The cryptocurrency market is reacting to easing inflation pressures in Europe and stable US Treasury yields, which have influenced investor behavior. The anticipation of less aggressive monetary tightening in the UK and eurozone has led to a decline in short-term bond yields, while European equities are buoyed by rising oil prices and gains in energy stocks. This environment has prompted investors to seek safer assets, contributing to Bitcoin's decline from its recent peak.
The 2x Bitcoin Strategy ETF (BITX) has experienced a significant drop, falling 4.86% to $67.12 as of 6:00 AM on Wednesday, December 18.