Bitcoin's price has been under significant pressure today, influenced by macroeconomic factors and shifting market sentiment. Strong U.S. economic data and rising bond yields have heightened expectations of a more hawkish Federal Reserve, leading to a risk-off sentiment among investors. This has caused Bitcoin to dip below $93,000, with the sell-off further intensified by the liquidation of nearly $1 billion in leveraged positions across the crypto market. Additionally, Cathie Wood's Ark Invest's decision to sell over 36,000 shares of its Bitcoin-backed ETF has added to the cautious atmosphere, reflecting broader market volatility.
The ProShares Short Bitcoin Strategy ETF (BITI) has responded to these developments, rising 2.59% to $23.73 as of 3:40 PM on Wednesday, January 8.