The U.S. Securities and Exchange Commission's decision to scale back its crypto enforcement unit has been a significant factor in Bitcoin's recent price movements. This regulatory shift, led by SEC's acting chair Mark Uyeda, is perceived as a move towards a more crypto-friendly environment, which has been positively received by the market. The easing of regulatory pressures is seen as a boon for Bitcoin, reducing the immediate threat of stringent enforcement actions. Additionally, El Salvador's continued accumulation of Bitcoin, with the recent addition of 20 BTC to its reserves, has further bolstered market sentiment. This move reflects a growing institutional interest and confidence in Bitcoin's long-term value, despite the cryptocurrency's ongoing struggle to maintain levels above $100,000.
The ProShares Short Bitcoin Strategy ETF (BITI) experienced a slight increase, rising 0.71% to $22.71 as of 8:20 AM on Wednesday, February 5.