Bitcoin dives below $39,000 for 1st time in 7 weeks

Bitcoin's price on Tuesday dove below the $39,000 level for the first time in more than seven weeks, almost two weeks after approval of spot Bitcoin exchange-traded funds (ETFs).

Price of Bitcoin fell to as low as $38,666 earlier, and it was trading around $38,977 at 8.48 a.m. EDT for a daily loss of 4.8%, marking the lowest level since Dec. 2, 2023.

Ethereum, the world's biggest altcoin by market cap, declined almost 7.6% to $2,207 while some altcoins saw their prices plummeting almost 14%.

Total value of the cryptocurrency market was down 5.5% to $1.52 trillion at the time, according to data from CoinMarketCap, a digital asset price-tracking website.

Bitcoin, the world's biggest cryptocurrency, touched almost the $49,000 level on Jan. 11-the day when the US' Securities and Exchange Commission approved spot Bitcoin ETFs. The much-awaited decision allowed investors, especially financial institutions, to trade Bitcoin without owning it.

A week after the approval, Bitcoin's price dove around 4% last Friday due to fading optimism among investors who liquidated their positions to take profit.

Bitcoin and other cryptocurrencies are still going through a correction phase after the approval of ETFs, according to some analysts.