The Federal Reserve's decision to maintain interest rates at 4.25%-4.50% has provided a stable backdrop 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, particularly 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 due to the resulting supply constraints. Analysts, including Michaël van de Poppe, are optimistic about Bitcoin's potential to reach new highs, contributing to its upward momentum.
The ProShares Bitcoin Strategy ETF (BITO) has mirrored this positive sentiment, rising 1.38% to $25.66 as of 12:00 PM on Thursday, January 30.