The People's Bank of China's decision to halt bond purchases has created a ripple effect in the financial markets, potentially benefiting Bitcoin as investors seek alternatives amidst the yuan's depreciation. This shift in capital flow is seen as a positive driver for Bitcoin, which has recently 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 recent negative funding rates in Bitcoin futures have also contributed to today's price action, with traders adjusting their positions in response to these signals.
The ProShares Bitcoin Strategy ETF (BITO) has responded to these developments, rising 1.09% to $23.09 as of 5:40 AM on Friday, January 10.