Bitcoin and cryptocurrencies have crashed further overnight, dropping to levels not seen since the crypto market began surging in late 2020 and wiping away almost $1 trillion worth of value in a month as a serious “ripple” warning comes into effect.

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The bitcoin price has dropped to around $27,000 per bitcoin, down 12% on the last 24 hours, and dragging down the wider crypto market with other top ten coins ethereum, BNB

BNB
, XRP

XRP
, solana, cardano, and avalanche recording even steeper loses. Ethereum has crashed 22% since this time yesterday, with BNB, XRP, solana, cardano and avalanche all lossing between 25% and 33%.

The sell-off comes after the $18 billion algorithmic stablecoin terraUSD (UST) lost its peg to the U.S. dollar, wiping out the price of its support coin luna which has now lost almost 99% of its value—and risks dragging the bitcoin and crypto market even lower.

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“Bitcoin continued to slide and closed below $30,000 for the first time since last July, although the fall did not trigger a large sell off and the price is trying to recover $30,000 in the Thursday Tokyo session,” Yuya Hasegawa, a crypto market analyst at Bitbank, wrote in an emailed note.

“The price of bitcoin, however, could still fall due to the UST situation and worsening technical sentiment, but if the U.S. inflation continues to slow down, the macro environment will likely improve and the price will bottom out.”

On Wednesday, markets were broadly hit by the latest U.S. inflation data that showed the consumer price index continued to run hot in April.

“U.S. CPI was a mixed result: even though it exceeded market expectations, it showed a sign of slowing down thanks to lower energy prices,” wrote Hasegawa.

“The result was not enough to completely wipe out the possibility of faster monetary tightening, but it was also not enough to strengthen that possibility as well. The market inclines to sell on that kind of uncertainty and that is why stocks and crypto fell, but there is also a hope that inflation in the U.S. will continue to alleviate.”

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The tech-heavy Nasdaq led markets lower on Wednesday, recording a 3.2% decline, with iPhone-maker Apple dethroned as the world’s most valuable publicly traded company by oil major Saudi Aramco.

“The past week has seen turmoil has spread across markets globally as the reality of hawkish central bank policy and widespread inflation is realised,” Will Hamilton, head of trading and research at asset management and technology company Trovio, said in emailed comments.

“Market drawdowns led by the tech heavy NASDAQ

NDAQ
spread across digital asset markets as investors continue their withdrawal from risk assets.”