The 2x Bitcoin Strategy ETF has been influenced by Bitcoin's relatively stable price movement, as the cryptocurrency hovers near its recent highs. Analysts point to the anticipation of upcoming U.S. labor market data and the broader macroeconomic environment as key factors contributing to this stability. Quantitative analyst Benjamin Cowen highlights the importance of the unemployment rate in determining Bitcoin's next move, suggesting that a stable rate could lead to a rally in the coming months. Additionally, the significant growth in the stablecoin market, with its market capitalization surpassing $200 billion, is seen as a positive signal for the wider crypto market. This expansion could provide the liquidity needed for further Bitcoin price increases, although the sharp increase in Bitcoin's open interest suggests that the recent price recovery is driven by leverage, potentially leading to increased volatility.
The 2x Bitcoin Strategy ETF (BITX) experienced a slight decline, dropping 0.25% to $62.98 at 7:40 AM on Friday, January 31.