The recent decision by the People's Bank of China to halt bond purchases has created a ripple effect in the cryptocurrency market, potentially driving capital from the yuan into Bitcoin. This shift is seen as a supportive factor for Bitcoin, which has rebounded above $94,000. Additionally, the anticipation surrounding the U.S. nonfarm payrolls report is adding to market volatility, as traders await further cues for risk assets. The negative funding rates in Bitcoin futures, which briefly turned negative, have also contributed to the current price dynamics, suggesting a local bottom and prompting traders to adjust their positions accordingly.
The ProShares Short Bitcoin Strategy ETF (BITI) has experienced a decline, with its price falling 0.89% to $23.51 as of 5:40 AM on Friday, January 10.