Bitcoin's price has been pressured by macroeconomic factors and regulatory developments, with strong U.S. economic data and rising bond yields fueling expectations of a more hawkish Federal Reserve stance. This has led to a risk-off sentiment among investors, causing Bitcoin to slip below $93,000 earlier in the day. Additionally, outgoing SEC Chair Gary Gensler's critical remarks about the crypto industry have added to the negative sentiment. Despite a legal victory for Coinbase against the SEC, which allows the exchange to pursue an interlocutory appeal, the broader market remains cautious amid economic uncertainties and the anticipation of the Federal Reserve's meeting minutes.
The Proshares Ultra Bitcoin ETF (BITU) experienced a significant decline, dropping 5.07% to $49.42 at 4:00 PM on Wednesday, January 8.