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 has shown resilience, rebounding during European trading hours. Onchain data suggests a potential buying opportunity, as short-term investors are selling at a loss, a scenario that often precedes price recoveries. Additionally, the ongoing accumulation by Bitcoin whales and decreasing exchange balances indicate a supply-demand imbalance that could support Bitcoin's price in the near term.
The ProShares Short Bitcoin Strategy ETF (BITI) has experienced a decline, dropping 1.05% to $23.47 as of 6:00 AM on Friday, January 10.