The release of U.S. economic data has triggered a sharp decline in Bitcoin's price, unsettling both crypto and stock markets. The U.S. JOLTS job openings report showed figures much higher than anticipated, suggesting a robust labor market. This has raised concerns that the Federal Reserve might not cut interest rates as aggressively as previously expected, which is unfavorable for risk assets like Bitcoin. Consequently, Bitcoin's price has dropped significantly as investors reassess their positions in light of the new economic outlook. The broader market sentiment has also turned cautious, further exacerbating Bitcoin's downturn despite strong demand from Bitcoin ETFs.
The ProShares Short Bitcoin Strategy ETF (BITI) has responded to Bitcoin's decline by rising 4.67% to $22.86 as of 12:00 PM on Tuesday, January 7.