Bitcoin bounces back above $30,000 as investors absorb fallout from Terra

The logo of the Bitcoin cryptocurrency in a window of an office building in the Mitte district of Berlin, Germany, on Tuesday, Feb. 15, 2022.

The price of the virtual currency rebounded after falling to lows as investors looked at the impact of Terra's stable coin.

According to Coin Metrics, the price of the digital currency was $30,579.58 at last check. It fell to its lowest point in over a year on Thursday. It is on pace for its seventh week of decline. ether was trading at $2,105.44.

It is on pace for its worst weeks since May 2021, down 15% and 22%, respectively.

The markets have struggled all year. Tech stocks were higher Friday morning, and the correlation between tech stocks andcryptocurrencies remained high.

Terra's UST stablecoin and luna token fell apart this week, which at least temporarily hit the price of bitcoin. Terra has been buying billions of dollars of the virtual currency for its UST reserves, but when the project fell apart, it was on the market.

As many investors experience their first big crash, the psychological level of the digital currency is $30,000. Until this month, the largest cryptocurrencies by market cap had been drifting between $38,000 and $45,000, well off its November all-time high above $68,000.

If it can hold $30,000, it could fall further still.