Benzinga - Bitcoin's (CRYPTO: BTC) plunge below the $39,000 mark signifies a downturn in market value.
Several crypto industry stalwarts, however, deem the correction as healthy.
What Happened: "We have needed a correction since the recent pump in price for BTC," Anthony Bevan, CEO of BlockGuard, said. "It’s an overdue retrace, which is healthy for the market. Without this correction, it would limit the potential for when the bull run truly starts to pick up pace. The whole market has been overbought for some time, I’m truly excited to see what comes next."
Multibank.io CEO Zak Taher believes that the current trend is a classic 'sell the news' situation after spot Bitcoin exchange-traded funds (ETFs) were approved by regulators.
"The market was anticipating the approval of the spot ETF, leading to a 'buy the rumor' scenario. As a result, the price of Bitcoin at the time the ETF news was released had already been priced in," Taher said. "Historical analysis of Bitcoin cycles suggests that these periods are often optimal for accumulation."
RocketX.exchange CTO Davinder Singh offered his perspective on the near-term future of Bitcoin.
"The decline below 39,000 appears to be driven by profit-taking and ongoing market adjustments associated with the launch of the Bitcoin ETF," Singh says. "We may experience sideways movement until the halving takes place. The Bitcoin halving could spark renewed optimism and a potential market upturn."
Also Read: Crypto Craze Meets Politics: How A Donald Trump Memecoin Soared To Astounding $96M Market Cap
Why It Matters: Bitcoin's decline represents a 5.3% drop within a day and a 9.8% reduction over the week.
Since breaching the $40,000 level on Jan. 22, Bitcoin has witnessed a steady decline, depreciating by 16.8% over the last two weeks relative to the U.S. dollar.
Ether (CRYPTO: ETH), another major cryptocurrency, has also decreased in value, trading down around 8% at $2,206.45 in the last 24 hours.
Some analysts attribute this downtrend to Grayscale's (OTC: GBTC) outflows and the lukewarm response to the launch of spot Bitcoin ETFs, which was anticipated to be a significant market event.
Read Next: Cathie Wood Calls Out Bitcoin Skeptics - 'You Can't Have It Both Ways,' 5 Myths Debunked
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