The recent release of U.S. job data, which exceeded expectations, has reinforced the Federal Reserve's stance on maintaining interest rate cuts, creating a less favorable environment for risk assets like Bitcoin. This has led to renewed selling pressure on the cryptocurrency, as investors brace for the upcoming release of the Fed minutes, which are not expected to bring positive news for the crypto market. Despite significant inflows into Bitcoin ETFs, broader economic indicators and comments from industry figures like Arthur Hayes, who anticipates a peak in Bitcoin's price by late March, have contributed to a cautious investor outlook.
The ProShares Short Bitcoin Strategy ETF (BITI) has responded to these market dynamics, rising 4.44% to $22.81 as of 11:00 AM on Tuesday, January 7.