The price of bitcoin bounced back above $ 30,000 after falling to a 2022 low of $ 25,000 as investors began to digest the collapse of UST Terra’s stablecoin.
Bitcoin last traded at $ 30,754.75, a 7% consolidation in 24 hours. On Thursday the BTC price had fallen as low as $ 25,401.29, its weakest point since December 2020.Bitcoin is currently in a phase towards a low weekly trading close and this if it happens it makes the fall seven weeks in a row. Meanwhile, Ethereum lost 8% and is currently trading at $ 2,130.90.
Bitcoin and Ethereum are both at their worst weekly levels since May 2021 which is almost a year ago with down 15% and 22% respectively. The crypto market has struggled throughout the year amid wider market turmoil. Bitcoin, which continues to top the price of cryptocurrencies, remains highly correlated with tech stocks, and Nasdaq futures, which also rose higher on Friday morning.
This week saw a horrific episode for cryptocurrency investors as the market faced off witnessing the collapse of UST’s stablecoin and Terra luna tokens. Terra had bought billions of bitcoin for its UST reserves, yet when the US dollar reserve broke, all bitcoin reserves had to be used for bailouts.
Bitcoin is testing key psychological levels at $ 30,000 as many investors experience massive falls, Before falling below the $ 30,000 level many times over, bitcoin traded at about $ 38,000 and $ 45,000 this year, far from all-November highs above $ 68,000.
Some analysts think the $ 30,000 trading level is very important, hence bitcoin cannot hold the $ 30,000 level it can fall further.
