The Federal Reserve's decision to maintain interest rates at 4.25%-4.50% initially pressured Bitcoin, but the market quickly turned its attention to more positive developments. The Czech Central Bank's potential move to add Bitcoin to its reserves has fueled optimism about increased institutional adoption. Additionally, the removal of the SEC's "Staff Accounting Bulletin 121" has made it easier for U.S. banks to hold Bitcoin, further boosting sentiment. These factors have contributed to a bullish outlook for Bitcoin, with significant inflows into Bitcoin ETFs, as noted by Geoffrey Kendrick of Standard Chartered.
The ProShares Short Bitcoin Strategy ETF (BITI) experienced a decline, dropping 2.36% to $21.49 at 3:20 PM on Wednesday, January 29.