Bitcoin's recent price movement has been shaped by several factors, including the release of U.S. December Consumer Price Index data and the anticipation of potential interest rate changes by the Federal Reserve. The CPI data showed a modest increase, aligning with expectations and suggesting a positive trend in underlying inflation. This has sparked renewed interest in Bitcoin, as evidenced by significant inflows into Bitcoin ETFs. However, the market remains cautious due to potential rate hikes by the Bank of Japan, which could impact both traditional and digital asset markets. Additionally, Coinbase's introduction of Bitcoin-backed loans via a DeFi protocol has provided a new avenue for Bitcoin holders to access liquidity without selling their assets, further influencing market dynamics.
The ProShares Bitcoin Strategy ETF (BITO) experienced a slight decline, dropping 0.25% to $24.16 at 12:20 PM on Thursday, January 16.