Bitcoin briefly dips below $40,000 for the first time this year

Bitcoin extended its losses on Monday, dipping below $40,000 for the first time this year and pulling the rest of the crypto market down with it.

The price of bitcoin was last lower by 3.5% at $40,237.64, according to Coin Metrics. Earlier, it fell to $39,414.80, its lowest level since Dec. 3. Ether dropped 5% to $2,329.89.

Bitcoin is still in its correction phase following the launch of several spot bitcoin ETFs in the U.S. for the first time ever. In the months leading up to Securities and Exchange Commission giving the green light to begin trading, investors bought bitcoin in anticipation of the approval.

“Today’s bitcoin move is wholly expected,” said Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs. “It looks like a ‘sell-the-news’ pullback, before we see the cryptocurrency recapturing its bullish trajectory.”

Bitcoin has fallen 15% since Jan. 10, the day the SEC gave its approval. Ether, which has been outperforming bitcoin, is still up 2% in the same period.

Charts analysts have warned that although its long-term uptrend remains intact, it likely still has further to fall. On Monday morning Fairlead Strategies’ Katie Stockton told CNBC’s “Squawk Box” that bitcoin could dip to as low as $36,000, adding that it wouldn’t be there for long. Wolfe’s Rob Ginsberg said it could be just the beginning of a disappointing first quarter of the year.

Cryptocurrencies broadly saw big declines Monday. Solana’s sol token lost 8%, while Ripple’s XRP fell 4% and the token ties to the DeFi protocol Uniswap dropped 5%.