The recent approval of Bitwise's Bitcoin and Ethereum ETF by the SEC has been a notable development, signaling increased acceptance of digital assets and potentially attracting more institutional investors. However, the market is also on edge due to the expiration of over $10 billion in Bitcoin and Ethereum options, which could lead to significant price volatility. Additionally, geopolitical tensions, such as the tariffs announced by President Trump, and the anticipation of U.S. labor market data have contributed to a cautious market atmosphere. These factors are influencing Bitcoin's price movement, as investors weigh the potential impact on Federal Reserve policy and market liquidity.
The ProShares Bitcoin Strategy ETF (BITO) experienced a slight decline, dropping 0.79% to $25.26 as of 5:00 AM on Friday, January 31.