Following the collapse of TerraUSD and the most tumultuous week for Bitcoin trading in at least two years, cryptocurrencies trended lower on Saturday. According to Bloomberg prices, the price of Bitcoin, the world’s largest cryptocurrency, dropped 3% to below $29,000 soon after midday in New York. At roughly $1967, Ether remained consistently below the $2,000 mark.
The abolition of algorithmic stable coin TerraUSD and its sibling token Luna slashed the cryptocurrency sector’s overall trillion-dollar worth by more than $270 billion. The weekly net shift in Bitcoin volatility was the biggest it’s been in the two years since Bloomberg started keeping track.
On Saturday, altcoins were not immune to the drops, with Solana and Polkadot down more than 5% and Avalanche down about 8%.
“Multiple headwinds have given market players practically nowhere to hide in any asset class this week,” wrote Brian Cubellis and David Duong of Coinbase Institutional in a research Friday, adding that volumes on the exchange were at their highest since the crypto sell-off in January.
“Interestingly, despite more volatility than during the sell-offs in January or December, volumes are still slightly lower in comparison,” they noted in the report. “This reflects lighter positioning as well as maybe decreased interest from retail owing to a poor market situation.”
If prices continue to consolidate below $30,000 in the next few days, the experts predict that it will become “a big barrier.” “If things continue to deteriorate, the next line of support would be around $20,000, which was the previous cycle’s all-time high,” they noted.