The People's Bank of China's decision to halt bond purchases has created a ripple effect in the cryptocurrency market, potentially driving capital away from the yuan and into Bitcoin. This shift is seen as a supportive factor for Bitcoin's price, as investors seek alternative assets amidst currency depreciation concerns. Additionally, the anticipation surrounding the U.S. nonfarm payrolls report is adding to market volatility, with traders closely monitoring its implications for risk assets like Bitcoin. The recent negative funding rates in Bitcoin futures have also contributed to today's price movement, as they often signal a local bottom, prompting traders to adjust their positions accordingly.
The 2x Bitcoin Strategy ETF (BITX) has responded to these dynamics, rising 2.01% to $52.81 as of 5:40 AM on Friday, January 10.