Luther believed that the only true sacraments were Baptism and the Eucharist because:

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Luther believed that the only true sacraments were Baptism and the Eucharist because both were instituted by Jesus. This belief is often referred to as the sacramental principle. Luther rejected the Catholic Church's teachings on the seven sacraments, stating that they were not rooted in Scripture or in the teachings of the early Christian church. Instead, he believed that the sacraments were signs of God's grace and that they had the power to convey that grace to believers who received them in faith.

Luther Believed That the Only True Sacraments Were Baptism and the Eucharist