The anticipation of crypto-friendly policies under the incoming Trump administration has stirred optimism in the Bitcoin market. Investors are hopeful about potential executive orders that could ease regulations on banks holding digital assets, a sentiment echoed by Anthony Pompliano's call for a national Bitcoin reserve. This optimism is further supported 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 a positive market sentiment. However, caution remains as analysts warn of potential volatility with Trump's inauguration and the upcoming U.S. Consumer Price Index data release.
The Proshares Ultrashort Bitcoin ETF (SBIT) experienced a slight decline, dropping 0.46% to $10.72 at 7:20 AM on Wednesday, January 15.