Bitcoin dipped below $42,000 early Monday morning, as the crypto market took a bearish turn after multiple spot Bitcoin ETFs began trading in the U.S. last week.

Per data from CoinGecko, Bitcoin briefly dropped to a low of $41, 753.68 early Monday morning, before recovering to trade at its current level of $42,600, down around 0.6% on the day and 3.5% in the past week.

The cryptocurrency's price surged to almost $49,000 as the first spot Bitcoin ETFs began trading in the U.S. last week, but momentum was short-lived, with traders appearing to sell the news of the much-anticipated event.

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The wider crypto market also saw a pullback over the weekend, dropping from just under $1.9 trillion on January 11 as the ETFs began trading, to $1.7 trillion today, per data from CoinGecko.

Bitcoin dominance likewise dropped from 49.32% on January 11 to 47.6% today, while data from CoinGlass showed Bitcoin open interest slipping from $20.05 billion to $18.37 billion over the same timeframe.

Crypto Fear & Greed Index turns neutral

Market sentiment has also taken a hit as prices plunged following the start of Bitcoin ETF trading in the United States.

The Crypto Fear & Greed Index slipped to "neutral" for the first time since November 2023, tumbling to a level of 52 after hitting a high of 76 in the run-up to the approval of spot Bitcoin ETFs.

The index tracks sentiment acros the crypto market, using metrics including volatility, market momentum and volume, social media, Google Trends data and market dominance.

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