Cryptocurrency Prices Fall After Bitcoin’s Most Volatile Week in Two Years

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Cryptocurrencies trended lower on Saturday in the wake of the TerraUSD crash and the most volatile week for Bitcoin trading in at least two years.

The price of Bitcoin, the world’s largest cryptocurrency, fell by around 2.5% midday in London to hover around the $29,000 mark, according to Bloomberg prices. Ether dipped back below the $2,000 threshold shortly after noon, reentering lower ground after previously rallying in Friday trading.

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.

Altcoins did not escape falls on Saturday, with Solana down 4.8%, Avalanche down 6.4% and Polkadot down 4.5%.

“Multiple headwinds have given market players almost nowhere to hide in any asset class this week,” Coinbase Institutional’s Brian Cubellis and David Duong said in a report on Friday, adding that volumes on their exchange were the highest since the January crypto selloff.

“Interestingly, despite higher volatility than during the January or December sell-offs, volumes remain somewhat lower in comparison, suggesting lighter positioning, as well as a possible decline in retail interest 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.

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