The recent developments in the cryptocurrency market have created a favorable environment for Bitcoin, leading to its price increase. The U.S. Federal Reserve's decision to maintain interest rates, along with Fed Chair Jerome Powell's supportive comments about banks serving crypto clients, has alleviated regulatory concerns and boosted market sentiment. Additionally, Illinois' proposal to establish a Bitcoin reserve and El Salvador's policy amendments, which reaffirm Bitcoin as legal tender, have further strengthened institutional confidence in Bitcoin. These factors, combined with positive earnings reports from major U.S. tech companies, have contributed to a risk-on sentiment, driving Bitcoin's price upward.
The ProShares Short Bitcoin Strategy ETF (BITI) experienced a decline, dropping 1.26% to $21.09 as of 5:00 AM on Thursday, January 30.