Bitcoin's price movement today has been shaped by optimism surrounding potential crypto-friendly policies from the incoming Trump administration and a broader market recovery. Investors are hopeful about executive orders that might ease restrictions on banks holding digital assets, a sentiment echoed by Anthony Pompliano's call for a national Bitcoin reserve. Additionally, Bitcoin's recovery past the $97,000 mark has been buoyed by a cooler-than-expected inflation report, with the producer price index rising only 0.2% in December, below the anticipated 0.4%. This has alleviated some inflation concerns, contributing to positive market sentiment. However, caution persists as analysts warn of potential volatility with Trump's inauguration and the upcoming U.S. CPI data release.
The ProShares Short Bitcoin Strategy ETF (BITI) experienced a slight decline, edging down 0.04% to $23.10 as of 7:20 AM on Wednesday, January 15.