Bloomberg — Cryptocurrencies had a downward trend on Saturday in the wake of the TerraUSD crash and the most volatile week for bitcoin trading in at least two years.
bitcoin price (XBT), the world’s largest cryptocurrency, had fallen 3% to below $29,000 just after noon in New York, according to prices compiled by Bloomberg. Ether was consistently below the $2,000 threshold at around $1,967.
The delisting of the TerraUSD algorithmic stablecoin and its sister token Luna wiped out over $270 billion of the total trillion-dollar value of the crypto sector. The weekly net change in bitcoin volatility was the highest in the two years since Bloomberg began recording data.
:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/bloomberglinea/YBVX2CSZE5F2VNF6NXKE4BQEQY.png "BTC weekly volatility pace hit highest level in at least two years")
Altcoins did not escape falls on Saturday, with Solana and Polkadot falling more than 5% and Avalanche almost 8%.
“Multiple headwinds have given market players almost nowhere to hide in any asset class this week,” Brian Cubellis and David Duong of Coinbase Institutional said in a report on Friday, and they added that volumes on their platform were the highest since the January crypto sell-off.
“Interestingly, despite higher volatility than during the January or December sell-offs, volumes remain somewhat lower by comparison, suggesting lighter positioning, as well as a possible decline in interest from retail trades due to a difficult market environment,” they wrote in the note.
Analysts said bitcoin’s $30,000 threshold will become “major resistance” if prices continue to consolidate below that mark in the coming days. “If things were to deteriorate further, the next support line would be around $20,000, which was the all-time high in the previous 2017/2018 cycle,” they added.
–With the help of Akshay Chinchalkar and Suvashree Ghosh.
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