The cryptocurrency trended lower on Saturday following the crash of TerraUSD and was the most volatile week for Bitcoin trading in at least two years.
The cryptocurrency trended lower on Saturday following the crash of TerraUSD and was the most volatile week for Bitcoin trading in at least two years.
The price of Bitcoin, the world’s largest cryptocurrency, fell 3% below $29,000 just after noon in New York, according to prices compiled by Bloomberg. Ether held steady below $2,000 around 1967.
The write-off of the algorithmic stablecoin TerraUSD and its sister token Luna has knocked more than $270 billion off the total trillion-dollar valuation of the crypto sector. The weekly net change in Bitcoin volatility is the highest in two years since Bloomberg first began recording data.
Altcoins also did not escape Saturday’s drop, with Solana and Polkadot dropping more than 5% and Avalanche down nearly 8%.
Coinbase Institutions’ Brian Cubellis and David Duong said in a Friday report that their exchange’s trading volume is the highest since January’s crypto sell-off. .
“Interestingly, despite greater volatility compared to the January or December sell-off, volume is still slightly lower than in comparison, which suggests lower positions as well as the possibility of a rate cut from retail due to the difficult market environment,” they wrote in the note.
Bitcoin’s $30,000 threshold will become “major resistance” if the price continues to consolidate below that mark over the next few days, analysts say. “If things continue to deteriorate, the next support line will be around $20,000, the all-time high in the previous 2017/2018 cycle,” they added.
