Breaking Down Bitcoin’s $39K Decline: A Closer Look at the Main Driver

• Bitcoin’s value has crashed to below $39,500 despite the presence of crypto ETFs.
• IntoTheBlock uncovered $2 billion in net deposits into centralized exchanges.
• Bitcoin is reportedly experiencing a temporary setback rather than entering a bearish market.

The market has been bearish for weeks, but the trend reached a new peak, with Bitcoin plummeting below $39,500 in the last 24 hours. This trend contradicts the crypto market’s expectations, as many believed the crypto ETFs would propel Bitcoin to new heights.

Multiple events have unfolded since the approval of Bitcoin ETFs on January 10, which may explain the current market condition. Some market observers suggest the emergence of a sell-the-news trend, while others attribute it to significant sell-offs initiated by institutional investor Grayscale.

Meanwhile, the market intelligence firm IntoTheBlock elaborated on the development based on on-chain data. A notable observation was the continuous weeks of inflows into centralized exchanges (CEXs). IntoTheBlock revealed that CEXs experienced a consistent influx of Bitcoin for six consecutive weeks,…

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