The recent downturn in Bitcoin's price can be attributed to a mix of macroeconomic factors and shifting market sentiment. Stronger-than-expected U.S. jobs data has prompted a reassessment of Federal Reserve rate cut expectations, leading to a rise in bond yields and a stronger dollar, both of which typically exert pressure on risk assets like Bitcoin. Major investment banks, including Goldman Sachs and Bank of America, have adjusted their forecasts in response to these developments. Additionally, the market is on edge due to potential U.S. government sales of Silkroad Bitcoin and concerns over upcoming inflation data, contributing to a risk-off environment. This has resulted in significant liquidations as Bitcoin fell below key support levels, triggering a broader sell-off in the crypto market.
The 2x Bitcoin Strategy ETF (BITX) has mirrored these market dynamics, experiencing a notable decline. As of 11:00 AM on Monday, January 13, the ETF's price has dropped 5.83% to $49.55.