Cryptocurrencies trended lower today in the wake of the TerraUSD crash and the most volatile week for bitcoin trading in at least two years.
The price of bitcoin (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 algorithmic stablecoin TerraUSD and its sister token Luna wiped out more than $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 declines, with Solana and Polkadot down more than 5% and Avalanche down almost 8%.
“Multiple headwinds have given market players almost nowhere to hide in any asset class this week,” Coinbase Institutional’s Brian Cubelis and David Duong said in a report last Friday, adding that volumes on their platform they were the highest since the January crypto sell-off.
“Interestingly, despite higher volatility than during the January or December sell-off, volumes remain somewhat lower in comparison, suggesting lighter positioning.as well as a possible decline in interest from retail operations 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 information from Bloomberg.