The Federal Reserve's decision to maintain interest rates has created a favorable environment for risk assets, including Bitcoin, which has seen a positive market response. Fed Chair Jerome Powell's remarks on banks serving crypto customers under certain conditions have further boosted confidence in the digital asset space. Additionally, President Trump's fintech and crypto initiatives, such as the launch of Truth.Fi, have injected fresh enthusiasm into the market. This has been complemented by long-term Bitcoin holders offloading their coins, a move seen as bullish by analysts, suggesting a potential supply crisis as exchange balances decline. Crypto analyst Michaël van de Poppe's optimism about Bitcoin reaching a new all-time high adds to the positive sentiment.
The ProShares Short Bitcoin Strategy ETF (BITI) has experienced a decline, dropping 1.45% to $21.05 as of 12:00 PM on Thursday, January 30.