The anticipation of President-elect Donald Trump's potential executive order prioritizing cryptocurrency as a national policy has significantly influenced Bitcoin's price movement. Reports of a strategic Bitcoin reserve and a crypto advisory council have fueled market optimism, suggesting a more favorable regulatory environment under the new administration. This optimism is reflected in Bitcoin's price, which has risen by 2.1% to $102,084.17. Despite these developments, the muted 'Coinbase Premium' indicates that U.S. investors may have already priced in much of this optimism during the previous rally. Additionally, Bitcoin ETFs have seen renewed demand, with BlackRock's IBIT ETF attracting substantial inflows, while Grayscale's GBTC ETF experienced outflows, highlighting varied investor sentiment.
The ProShares Short Bitcoin Strategy ETF (BITI) experienced a decline, dropping 1.62% to $21.82 at 4:20 AM on Friday, January 17.