The recent decline in Bitcoin's price is largely driven by increased economic uncertainty following President Trump's announcement of new tariffs. The tariffs, set to take effect on February 1, impose 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 $105,826.97. Additionally, U.S. labor market data and inflation figures are influencing Bitcoin's trajectory, with the recent PCE price index report indicating persistent inflation. This macroeconomic backdrop, combined with the tariff news, has contributed to Bitcoin's current price movement.
The Proshares Ultra Bitcoin ETF (BITU) experienced a significant decline, dropping 5.33% to $57.52 at 3:00 PM on Friday, January 31.