Bitcoin's recent price dynamics have been shaped by macroeconomic factors and political developments, particularly the softer-than-expected U.S. December Consumer Price Index data, which initially propelled Bitcoin past the $100,000 threshold. This optimism was 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 announcements. The market has seen a transition from leverage-driven to spot-driven activity, with futures open interest declining. The anticipation of Trump's strategic Bitcoin reserve plan has also added to the volatility, with experts forecasting significant price fluctuations in the near term.
The Proshares Ultra Bitcoin ETF (BITU) experienced a decline, falling 0.81% to $54.89 as of 9:00 AM on Thursday, January 16.