The recent U.S. jobs report, indicating stronger-than-expected employment growth and a drop in the unemployment rate to 4.1%, has sparked concerns about inflationary pressures. This has led to a sell-off in American equities and a rise in bond yields, suggesting that the market expects the Federal Reserve to maintain a hawkish stance. Such economic conditions typically put downward pressure on riskier assets like Bitcoin. Additionally, Bitcoin's hash rate has declined, and on-chain data shows a reduction in active addresses, indicating that some traders are offloading their holdings. The potential sale of 69,000 Bitcoin seized from the Silk Road marketplace adds to market uncertainty, contributing to bearish sentiment.
The ProShares Bitcoin Strategy ETF (BITO) saw a modest increase, rising 0.83% to $23.03 as of 1:00 PM on Saturday, January 11.