Bitcoin and other major cryptocurrencies struggled on Tuesday as the effects of the Terra collapse will continue to impact investors’ sentiments, according to Coindesk. Major cryptocurrencies were trading in the red amid investors’ fears about inflation and a possible recession since central banks have started to tighten monetary policy.
The world’s most popular and largest cryptocurrency, Bitcoin was trading below the $30,000-mark. The second largest cryptocurrency by market capitalization, Ethereum, fell below $2,000.
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Bitcoin price was at $29,323.42, down by 3.02 per cent. Ethereum’s price fell by 2.82 per cent to $1,980.33.
“Bitcoin and other cryptocurrencies rallied on Monday after a well-known fashion brand Balenciaga announced to accept crypto payments but fell later in the day. BTC is currently trading at US$29,200 level, which is the lowest since January 2021,” Edul Patel, CEO and Co-founder, Mudrex said.
“Despite the high volatility, Bitcoin managed to hold above its support at US$27,000, which is also the weakest in its year-long trading range. It seems like investors and institutions have paused after Terra’s crash and are a little hesitant to return to the market,” Patel said.
XRP fell by 2.87 per cent, Solana was down by 5.43 per cent, Cardano fell by 4.21 per cent, Stellar was down by 4.05 per cent, Avalanche was down by 6.78 per cent, Polkadot was down by 2.46 per cent.
Other major alt coins such as Dogecoin fell 2.39 per cent and Shiba Inu fell 1.10 per cent.