After the cryptocurrency’s soaring, Bitcoin fell below $40,000 for the first time since the launch of the Bitcoin ETF. Analysts see a “descending escalator.”

The world’s largest cryptocurrency, Bitcoin, fell to a seven-week low on Monday, trading below $40,000 for the first time since the launch of 11 spot Bitcoin exchange-traded funds on January 11. It was most recently quoted 3.4 percent lower at $40,181, its lowest level since December 4th. Ether, the second largest cryptocurrency, fell 5.7 percent to $2,343.

The SEC’s decision to approve exchange-traded Bitcoin funds was eagerly awaited and had provided a lot of tailwind on the crypto market in advance. Some analysts said they had expected Bitcoin to initially give back some of those gains.

Other market participants said the cryptocurrency was struggling to compete with traditional stocks after the S&P 500 index hit new record highs on Monday. “It feels like Bitcoin investors are walking up a descending escalator at the moment, while traditional financial benchmarks are enjoying the easier ride to record highs,” said Antoni Trenchev, co-founder of crypto lending platform Nexo. He noted that similar drops in Bitcoin have occurred following other major crypto events. In this context, he mentioned the IPO of the crypto exchange Coinbase and the introduction of Bitcoin futures.

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