Bitcoin's recent price dynamics have been shaped by macroeconomic factors and political developments, notably the softer-than-expected U.S. December Consumer Price Index data, which initially propelled Bitcoin past the $100,000 threshold. This optimism was further bolstered by expectations of pro-crypto policies from President-elect Donald Trump. However, the momentum has waned as traders shift their focus to the upcoming inauguration and potential policy shifts. The anticipation of Trump's strategic Bitcoin reserve plan has added to market volatility, with futures open interest declining, signaling a move from leverage-driven to spot-driven market activity.
The ProShares Short Bitcoin Strategy ETF (BITI) has seen a modest increase, rising 0.45% to $22.46 as of 9:00 AM on Thursday, January 16.