Bitcoin's recent price movement has been shaped by a combination of economic data and shifting market sentiment. The cryptocurrency initially dipped due to a stronger-than-expected U.S. economic report, which pushed treasury yields higher and negatively impacted risk assets like Bitcoin. However, Bitcoin demonstrated resilience, rebounding during European trading hours. Onchain data suggests a potential buying opportunity, as the Spent Output Profit Ratio (SOPR) indicates short-term investors are selling at a loss, a pattern that often precedes price recoveries. Additionally, ongoing accumulation by Bitcoin whales and decreasing exchange balances suggest a supply-demand imbalance that could support Bitcoin's price in the near term.
The Proshares Ultra Bitcoin ETF (BITU) has responded to these dynamics, rising 2.53% to $50.63 as of 6:00 AM on Friday, January 10.