The recent release of U.S. December Consumer Price Index data and the anticipation of potential interest rate changes by the Federal Reserve have influenced Bitcoin's price movement. 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, with 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 adding to the market's complexity.
The Proshares Ultrashort Bitcoin ETF (SBIT) saw a slight increase, rising 0.20% to $10.12 at 12:20 PM on Thursday, January 16.