The latest U.S. inflation data has reignited investor interest in risk assets, particularly Bitcoin, as the Consumer Price Index (CPI) report revealed a 0.4% increase in December. While this was slightly higher than the previous month, the core CPI, excluding food and energy, dipped to 3.2% from 3.3%. This unexpected decline in core inflation has fueled speculation that the Federal Reserve might consider rate cuts sooner than anticipated, enhancing Bitcoin's appeal as a hedge against inflation. The anticipation of potential rate cuts has led to a surge in Bitcoin's price, as investors seek to capitalize on the favorable macroeconomic conditions.
The ProShares Short Bitcoin Strategy ETF (BITI) experienced a decline, dropping 2.94% to $22.43 at 11:20 AM on Wednesday, January 15.