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NEW YORK - Bitcoin experienced a significant pullback today, retreating below the $42,000 mark after a recent surge close to $49,000. This fluctuation in Bitcoin's value comes in the wake of the sanctioning of a Bitcoin Exchange-Traded Fund (ETF), which initially boosted the cryptocurrency's price. Currently, Bitcoin is hovering near a critical support level at $41,500, with altcoins also witnessing declines alongside it.

The market's sentiment has taken a bearish turn despite the optimism earlier generated by the ETF news. This change in investor outlook is reflected in the fear and greed index, which currently stands at a "Greed" level of 63, suggesting a shift in market attitude towards caution and concern.

In stark contrast to the downturn in the cryptocurrency sector, the US stock markets have closed with gains of over 1%. This divergence highlights the ongoing volatility and unique market dynamics affecting digital currencies compared to traditional equity markets.

https://www.investing.com/news/cryptocurrency-news/bitcoin-retreats-below-42k-following-initial-etfdriven-surge-93CH-3277839