Bitcoin's price is facing downward pressure due to a mix of macroeconomic factors and shifting market sentiment. The release of stronger-than-expected U.S. jobs data last Friday has prompted a reassessment of Federal Reserve rate cut expectations, leading to a rise in bond yields and a stronger dollar. These developments typically exert pressure on risk assets like Bitcoin. Additionally, concerns over potential U.S. government sales of Silkroad Bitcoin and upcoming inflation data have added to the bearish sentiment. The broader risk-off environment has triggered significant liquidations as Bitcoin fell below key support levels, causing a cascade of sell-offs across the crypto market.
The ProShares Bitcoin Strategy ETF (BITO) has mirrored Bitcoin's decline, dropping 2.78% to $22.41 as of 11:00 AM on Monday, January 13.