The recent surge in Bitcoin's price can be attributed to a mix of institutional interest and favorable geopolitical developments. Notably, Intesa Sanpaolo, Italy's largest bank, has made a significant purchase of Bitcoin, signaling a growing acceptance of digital assets within traditional finance. This move coincides with the European Union's adoption of its first bloc-wide crypto regulations, which could encourage further adoption among financial institutions. Additionally, reports of President-elect Donald Trump planning a pro-crypto executive order have fueled market optimism. This anticipated order may include the formation of a new crypto council and the easing of SEC regulations that currently restrict banks from holding cryptocurrencies. Despite concerns about the Federal Reserve's monetary policy, Bitcoin has shown resilience, reclaiming the $96,000 mark.
The Proshares Ultrashort Bitcoin ETF (SBIT) experienced a notable decline, dropping 6.35% to $10.76 as of 7:00 AM on Tuesday, January 14.