According to data from digital asset price tracking site CoinMarketCap, the total value of the cryptocurrency market increased by more than 4.3 percent to $ 1.62 trillion.
Bitcoin fell as low as $38,559 on Tuesday, its lowest level since December 2, 2023, as optimism waned among investors who liquidated their positions a week after the approval of spot Bitcoin exchange-traded funds (ETFs).
Bitcoin reached $49,000 on January 11, when the US Securities and Exchange Commission approved spot Bitcoin ETFs.
The sell-off in the world's largest cryptocurrency also came with reports that the bankrupt cryptocurrency exchange company FTX's bankruptcy estate sold 22 million shares of Grayscale Bitcoin Trust (GBTC) worth $1 billion.
It is also estimated that investors have sold more than $2 billion worth of GBTC, one of the first spot Bitcoin ETFs in the US, since early January.
On the other hand, BlackRock's Bitcoin ETF, the world's largest asset management company, was the first fund to reach $2 billion in assets under management on Friday, as it holds almost 50,000 Bitcoins.