Bitcoin price plunges below US$30,000. What's going on?

The world's top crypto looks to be caught up in Terra's UST and LUNA selloff.

| More on:
A bitcoin sits on a graph with red arrow going down

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Bitcoin price falls below key level of US$30,000
  • The world's top crypto looks to be caught up in Terra's UST and LUNA selloff
  • Bitcoin also pressured by another sharp fall on the Nasdaq

The Bitcoin (CRYPTO: BTC) price has fallen below the key psychological level of US$30,00.

At the time of writing Bitcoin is trading for US$29,830, down 4.8% since this time yesterday. Over the past 24 hours, the token traded as low as US$28,170, according to data from CoinMarketCap.

That puts the world's top crypto by market cap down 25% over the past week and down 40% year-to-date. Crypto investors who bought at the record high Bitcoin price on 10 November will be nursing losses of 57%.

Why are cryptos selling off?

Ordinarily, it's the Bitcoin price that sets the tone in crypto markets, with most altcoins following in their big siblings' virtual footsteps.

But that doesn't appear to be the case with the latest round of selling.

Much of the pressure facing the Bitcoin price looks to be connected to the woes plaguing TerraUSD (CRYPTO: UST). (Details here.)

UST, as you may be aware, is intended to be pegged to the US dollar. But last night the stablecoin was anything by stable, plunging from its intended peg of US$1 to 30 US cents.

That in turn saw Terra (CRYPTO: LUNA) fall by a gut wrenching 97% over the past 24 hours. LUNA is meant to hold the price of UST right at US$1, with investors holding UST able to swap it for US$1 worth of LUNA at any stage.

So, what does this have to do with the Bitcoin price?

Bitcoin price falls amid US$3 billion sale

As if the 3.2% overnight fall in the Nasdaq didn't throw up enough tailwinds for the Bitcoin price, the world's original token came under additional pressure from the Luna Foundation Guard. In an effort to revive the UST US dollar peg, the Foundation reported it will sell its US$3 billion of Bitcoin reserves.

According to Jaime Baeza, CEO of crypto hedge fund ANB Investments (quoted by Forbes), "This accelerated the selloff of the broader crypto market as panic spread, and a more black swan systemic-risk event loomed closer."

Baeza added:

Crypto markets have been under pressure given macro events – tighter monetary policy, surging inflation, Russia's invasion of Ukraine – and the correlation between Bitcoin and global equities is high. However, the most recent fall in crypto prices is more due to the de-peg of the UST.

With the leading global stablecoin now showing even more volatility than the Bitcoin price, proceed with care.

Should you invest $1,000 in Catapult Group International right now?

Before you buy Catapult Group International shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Catapult Group International wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin and Luna. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

More on Cryptocurrencies

Bitcoin coins in a pile.
Cryptocurrencies

What's happening with the Bitcoin price amid the Trump tariff market panic?

You may have heard Bitcoin referred to as ‘digital gold’. But is it really a haven asset?

Read more »

A graphic picture of gold Bitcoins with the Bitcoin symbol lying on a desk with arrows shooting higher and one arrow lifting off the flat surface pointing to the sky.
ETFs

Dip your toes into cryptocurrency with these 2 ASX ETFs

Interested in cryptocurrency?

Read more »

Bitcoin symbol with a rising green arrow.
Cryptocurrencies

Bitcoin surges: How to invest through the ASX

Wanting to gain exposure to the cryptocurrency? Check out these two options.

Read more »

Bitcoin coins in a pile.
Cryptocurrencies

Here's what owning Bitcoin for 7 years has taught me

Bitcoin has been a fantastic investment for me, but not without its pitfalls.

Read more »

A woman holds a bitcoin token in her hand as she smiles at the camera in the background.
Cryptocurrencies

Bitcoin price surges on Donald Trump's cryptocurrency strategic reserve update

The Bitcoin price hit all-time highs of US$109,115 on the day Trump was sworn into office.

Read more »

Bitcoin coin with a rising arrow.
Cryptocurrencies

The Bitcoin price soared 120% in 2024. Could it repeat that performance in 2025?

Bitcoin soared by 150% in 2023 and 120% in 2024, so many crypto investors are expecting it to once again…

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Cryptocurrencies

Why Bitcoin, Ethereum, and Dogecoin just surged

Today's CPI report turns out to mean a great deal to crypto investors.

Read more »

Bitcoin coin with a rising arrow.
Cryptocurrencies

Bitcoin price smashes new record highs as market value tops US$2.1 trillion

Bitcoin just soared to new all-time highs. But why?

Read more »