Bitcoin Plummets: Crypto Market's Fiery Descent Sparks Investor Concern

Bitcoin (BTC) experienced a significant decline, dropping below $39,000 during European trading on Tuesday. This reversal erased nearly all the gains made over the past two months, which had been driven by anticipation of spot exchange-traded fund (ETF) approvals in the United States. Over the past 24 hours, BTC saw a substantial 5% decrease, marking its lowest level in the past two months. The CoinDesk 20, an index comprising the top tokens by market capitalization, also suffered a 7% decline. Although Bitcoin briefly dipped to $38,700, it managed a slight recovery. Notably, it had recently achieved a two-year high of over $49,000 following the commencement of spot bitcoin ETF trading in the U.S. on January 11th.