Bitcoin briefly falls below $24,000 as Terra’s LUNA crash causes ripples in the crypto market

The price of Bitcoin continues and there is no sign of when the carnage will stop. This morning, the price of Bitcoin briefly fell to under $24,000 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.

In a post on Twitter, Checkmate, the lead insights analyst at on-chain analytics firm Glassnode, confirmed the $24,000 price saying  “#Bitcoin basically kissed the realized price ($24k). $BTC is cheap.”

https://twitter.com/_Checkmatey_/status/1524663983046811648

Since then, the world’s most popular cryptocurrency has recovered some of its losses. Bitcoin is now trading at $27,832.40, a gain of about $4,000. Bitcoin is not alone. Ether also fell more than 13% to $1,832.33.

As we reported yesterday, the recent crypto crash is due to a series of macro events including surging inflation, tighter monetary policy, and Russia’s invasion of Ukraine, which caused investors to shun risky assets.

However, many crypto experts said the current price correction is due to the collapse of Terra stablecoin which sent shockwaves to the entire crypto market causing billions in losses to bitcoin and alt currencies like Ethereum and Solana.

Terra’s luna is a stablecoin designed to support UST’s one-to-one peg with the U.S. dollar. But in just one week, Terra’s LUNA has dropped 99.7%. LUNA tokens also lost 96% in the past 24 hours alone, pushing it to less than 10 cents. That’s down from about $60 earlier this week and a record $120 in mid-April.

Terra is currently ranked among the top 10 most valuable cryptocurrencies, dropped from its $120 peak last month to below $1 on Wednesday.