Bitcoin, the largest cryptocurrency by market value, climbed 9.3% on the day to hit $30,335 as of 6:20 a.m. ET, according to data from CoinMarketCap. It dipped Thursday to its lowest level since late 2020, briefly dipping below $26,000.
Second largest crypto ether rose around 9% to trade at $2,065, after falling more than 20% in the past week. Among other major tokens, gimbal and solana respectively increased by 28% and 20%. Meanwhile, the same coindogecoin rose 18%.
Although bitcoin had some upward momentum on Friday, it remains below the $45,000 levels it was trading at in February, before the Ukraine war, and well below the all-time high of $69,000 hit in February. november.
It is also still on course for a weekly loss, which would be its seventh straight, longest streak of weekly losses in its history. Prior to this year, the token had not recorded consecutive weekly losses.
“Some traders may see this month’s sharp fall as an opportunity to buy the dip at once, but given the highly volatile nature of coins, the crypto house of cards could still collapse,” Susannah Streeter , senior investment and market analyst at Hargreaves Lansdown, said.
She added: “This latest dip in the wheel of fortune demonstrates that speculation in cryptocurrencies is extremely risky and not suitable for investors who do not have money they can afford to lose.”
This week’s wild sell in the crypto market came after a dramatic collapse of a major stablecoin, combined with investors fleeing high-risk assets.
TerraUSD cratered after losing its peg to the dollar and was last trading at around $0.15. Its sister coin luna effectively plunged 100% to zero on Friday, from over $80 per token a week ago.
Along with stocks and bonds, the crypto market has deteriorated in recent weeks as surging inflation pushed the Federal Reserve On Thursday, Fed Chairman Jerome Powell boosted morale by downplaying the chances of an above-normal interest rate hike of 75 basis points in comments to Marketplace.
In the past week alone, the crypto market as a whole has lost over $500 billion in value, according to CoinMarketCap.