The anticipation of a potential rate hike from the Bank of Japan (BoJ) and the recent U.S. Consumer Price Index (CPI) data are key factors influencing Bitcoin's price movement today. With a 90% chance of a BoJ rate hike on January 24, investors are trading cautiously, preparing for possible sell-offs similar to those seen in previous rate hikes. The recent U.S. CPI data initially boosted Bitcoin's price due to a slower-than-expected pace of core inflation, but this momentum has waned as traders await further economic indicators. Additionally, the upcoming U.S. retail sales data and political events, such as Donald Trump's inauguration, are contributing to a more conservative approach among investors, as noted by Jag Kooner, Head of Derivatives at Bitfinex.
The ProShares Short Bitcoin Strategy ETF (BITI) saw a slight increase, rising 0.31% to $22.43 at 11:00 AM on Thursday, January 16.