Key reason behind Bitcoin (BTC) price crash
Jan. 23, the Bitcoin price saw a sharp decline to an intraday low of $39,494.65. As a result of this dip, BTC's market capitalization dropped to $784.8 billion, with a 24-hour trading volume reaching $30 billion. The factor primarily responsible for Bitcoin's downward trend is substantial withdrawals from Bitcoin exchange-traded funds (ETFs). Notably, $640 million left the Grayscale Bitcoin Trust (GBTC) in just one day. The total amount withdrawn so far has reached a concerning $3.45 billion. Leading ETF analyst James Seyffart wrote about this trend in a social media post, noting the accelerating rate of these withdrawals. Another analyst, Holger Zschaepitz, has observed decreasing excitement around Bitcoin ETFs, which is consistent with a drop in the correlation between Bitcoin and technology stocks, currently standing at a low of 0.3 in the past week.
