Bitcoin's recent price fluctuations have been driven 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, which ended 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 resulted in a pullback in Bitcoin's price, exacerbated by the liquidation of over $347 million in crypto positions, including $58.42 million in short BTC positions.
The Proshares Ultrashort Bitcoin ETF (SBIT) has responded to these market dynamics, rising 1.19% to $10.22 as of 4:20 AM on Thursday, January 16.