The world’s largest crypto currency was down 3.98% at $39,938.00, trading at its lowest level since December 4 following a brief recovery

Bitcoin dropped to a seven-week low on Monday, hovering below $40,000 for the first time since the launch of 11 spot bitcoin exchange traded funds (ETFs) on January 11.

The world’s largest crypto currency was down 3.98% at $39,938.00, trading at its lowest level since December 4 following a brief recovery. Ether, the second largest crypto currency, was 6.37% lower at $2,328.30.

Bitcoin had rallied on growing excitement the U.S. SEC would approve bitcoin exchange traded funds, opening up the crypto currency to a slew of new investors. Bitcoin gained nearly 70% from August, when a federal court forced the Securities and Exchange Commission to review its decision to refuse Grayscale Investment’s bitcoin ETF application.

Some analysts said they had expected bitcoin to initially pare some of those gains.

Other market-watchers said on Monday the crypto currency was having trouble competing with traditional stocks after the S&P 500 benchmark index hit record highs on Monday driven by semiconductor and other tech stocks.

It feels like bitcoin investors are running up a descending escalator right now as traditional financial benchmarks enjoy the easier ride to record highs, said Antoni Trenchev, co-founder of crypto lender Nexo.

He noted earlier major crypto events, including the IPO of crypto exchange Coinbase and the launch of bitcoin futures, were followed by similar bitcoin slumps.

Trenchev said bitcoin was also pressured by outflows from Grayscale Investment’s bitcoin trust, which was converted into an ETF when the SEC approved the other bitcoin exchange traded funds products earlier this month.

CoinDesk reported on Monday that FTX, which entered bankruptcy in 2022, has sold 22 million shares worth around $1 billion in the ETF.

Spot bitcoin exchange traded funds are in danger of joining the crypto hall of infamy, Trenchev added.