The recent macroeconomic developments have put significant pressure on Bitcoin, leading to a notable decline in its price. Stronger-than-expected U.S. jobs data has prompted a reassessment of Federal Reserve rate cut expectations, causing a spike in bond yields and a stronger dollar, both of which typically weigh on risk assets like Bitcoin. Additionally, concerns over potential U.S. government sales of Silkroad Bitcoin and upcoming inflation data have further fueled bearish sentiment. The broader risk-off environment has resulted in significant liquidations, with Bitcoin dipping below key support levels, triggering a cascade of sell-offs across the crypto market.
The Proshares Ultrashort Bitcoin ETF (SBIT) has responded to these market dynamics, rising 5.63% to $11.83 as of 11:00 AM on Monday, January 13.