Bitcoin Crashes Below $30,000 as LUNA Loses 99%

• Bitcoin has  slipped below $30,000 for the second time this week after losing 5% of its value.

• The crash was triggered by new inflation data which shows that consumer prices remain at 40-year highs.

• Terra’s LUNA has crashed 97% in the past seven days, dropping out of the top 30 cryptocurrencies.

Bitcoin has crashed by more than 5% in the past 24 hours, slipping below $30,000, according to data from Coin Metrics.

Earlier in the day, it dropped as low as $29,026.66, its lowest point since December 2020. The second-largest crypto by market cap, Ether also fell 5% to $2,221.35.

Other cryptocurrencies such as SOL, XRP, and DOGE lost 25%, 17%, and 21% respectively.

The crash in the cryptocurrency market follows a report by the Bureau of Labor Statistics which shows that consumer prices for the month of April jumped 8.3%.

The news frightened investors, leading them to close their positions in higher-risk assets, including cryptocurrencies.

This is the second time this week that Bitcoin has crashed below $30,000, which analysts claim is a key support level for the leading cryptocurrency. If BTC fails to hold this position it may continue to crash.

Read also: El Salvador Buys 500 Bitcoin Following Market Bloodbath

Meanwhile, investors of the Terra project had to digest even worse news as the LUNA token has lost more than 97% in the past 3 days. The project’s stablecoin, TerraUSD, has also lost its $1 peg and is trading at $0.697.

At the time of this report, the cryptocurrency market holds a global market cap of $1.31 Trillion. The entire market is down 10.3% in the past 24 hours.

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