The recent movement in Bitcoin's price is being shaped by macroeconomic and regulatory factors. A stronger-than-expected U.S. private payrolls report has led to speculation that the Federal Reserve may keep interest rates elevated for a longer period, strengthening the dollar and making cryptocurrencies like Bitcoin less appealing. Additionally, the SEC's announcement of a new Crypto Task Force has introduced uncertainty, as the market anticipates clearer regulatory guidelines. Bitcoin's current trading below its 2025 average realized price level of $100,356 is also a concern, as this level has historically acted as a strong support. The dip below this threshold has raised fears of further declines, especially with over 2.6 million Bitcoin currently at a loss, potentially increasing selling pressure.
The 2x Bitcoin Strategy ETF (BITX) experienced a decline, dropping 3.24% to $53.77 as of 5:00 PM on Wednesday, February 5.