12/26

BITX Drops 7.49% as Bitcoin Faces Rising Rates and Market Volatility

The 2x Bitcoin Strategy ETF (BITX) closed down 7.49% at $54.69 on December 26, as Bitcoin's price fell 3.76% to $95,634.67 amid a reversal of its Christmas rally. Bitcoin's decline was exacerbated by a surge in long-term interest rates, with the 10-year Treasury yield climbing to 4.63%, creating a headwind for risk assets. The broader crypto market also faced pressure, with the CoinDesk 20 Index down 4.2%, as major cryptocurrencies like ETH, SOL, and XRP posted losses between 4% and 7%. The market's volatility was further fueled by the impending expiration of $18 billion in Bitcoin options on the Deribit exchange, which heightened selling pressure. Additionally, the influx of 33,000 BTC into exchanges contributed to the downward momentum, as traders anticipated potential price fluctuations.