Bitcoin's recent price movement has been shaped by macroeconomic factors and market dynamics, particularly the release of the U.S. December Consumer Price Index (CPI) data. Initially, the CPI data, which showed a 0.4% month-on-month increase, aligned with expectations and suggested a potential easing of inflationary pressures, boosting Bitcoin past the $100,000 mark. However, the optimism was short-lived as broader economic concerns and the Federal Reserve's potential interest rate stance led to a reassessment of risk. This resulted in a pullback in Bitcoin's price, further exacerbated by the liquidation of over $347 million in crypto positions, including significant short BTC positions.
The Proshares Ultra Bitcoin ETF (BITU) experienced a decline, dropping 1.48% to $54.52 at 4:20 AM on Thursday, January 16.