On January 1st, Bitcoin (BTC) experienced significant declines. One week following the introduction of the first spot ETFs based on Bitcoin across different trading platforms, the value of BTC had reached $1,633,107 with a market capitalization of $805.8 billion as of 9:21 in the evening. At Coordinated Universal Time (UTC) on Thursday. The downturn indicates a 23.16% drop over the last 224 hours. With Bitcoin now valued at $2,809.82, it has reached its lowest price in a month, previously having been at $225.19 on December. The cryptocurrency market experienced similar declines, with a decrease of 249.59% within a span of 24 hours. Declines spread to other leading assets: Avalanche (AVAX) fell by 7.8%, Solana (SOL) decreased by 7.4%, Cardano (ADA) dropped by 4.8%, Ethereum (ETH) dipped by 2.6%, and XRP experienced a 3.4% decline. While the specific reasons behind the recent downturn in BTC’s value are unclear, it’s possible that they may be connected to withdrawals or sell-offs impacting Grayscale’s GBTC ETF. Bloomberg’s ETF expert, Eric Balchunas, supplied information on this in January. Balchunas highlighted that nine Bitcoin funds focusing on direct purchases have collectively attracted $2.8 billion. However, these gains have been partly neutralized by a substantial $1.6 billion withdrawal from the Grayscale Bitcoin Trust (GBTC), resulting in a net positive inflow of $1.2 billion. Moreover, he emphasized that, over time, spot Bitcoin ETFs are progressively expanding and are not being significantly hindered by the capital outflows from GBTC. Nevertheless, any Bitcoin withdrawn from GBTC and not removed from the market boosts the supply of Bitcoin for trading, potentially influencing its value. Additionally, market dynamics might be affected by changes in investor behavior and enthusiasm—specifically, diminished fascination with Bitcoin after the early excitement around ETFs.