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. The CPI showed a 0.4% month-on-month increase, aligning with expectations and initially boosting Bitcoin past the $100,000 mark. This surge was supported by renewed inflows into spot Bitcoin ETFs, notably from Fidelity's FBTC, breaking a four-day outflow streak. However, the optimism was short-lived as broader economic concerns and the potential for the Federal Reserve to maintain its current interest rate stance led to a reassessment of risk. This, coupled with the liquidation of over $347 million in crypto positions, including $58.42 million in short BTC positions, contributed to Bitcoin's price pullback.
The 2x Bitcoin Strategy ETF (BITX) experienced a decline, dropping 1.67% to $56.95 at 4:20 AM on Thursday, January 16.