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 away from the yuan and into Bitcoin. This shift is seen as a supportive factor for Bitcoin's price, as investors seek alternatives amidst the yuan's depreciation. 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 today's price action, signaling a potential local bottom and encouraging traders to adjust their positions.
The ProShares Ultra Bitcoin ETF (BITU) has responded to these dynamics, rising 2.19% to $50.46 as of 5:40 AM on Friday, January 10.