The recent decline in Bitcoin's price is largely driven by economic uncertainties following President Trump's announcement of new tariffs. The tariffs, set to take effect on February 1, include a 25% levy on Canada and Mexico and a 10% tariff on China, creating volatility in the cryptocurrency markets. This has led to a broader decline in the CoinDesk 20 Index, with Bitcoin slipping below its earlier high of $106,000. Additionally, U.S. labor market data and inflation figures are adding to the pressure, with the PCE price index showing a 0.3% rise in December, suggesting persistent inflation that could influence Federal Reserve policy.
The ProShares UltraShort Bitcoin ETF (SBIT) has responded to these developments, rising 5.25% to $9.43 as of 3:00 PM on Friday, January 31.