Bitcoin's recent price movement has been shaped by a combination of economic data and 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. 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 Ultrashort Bitcoin ETF (SBIT) has reacted to these developments, experiencing a decline of 2.37% to $11.14 as of 6:00 AM on Friday, January 10.