This comes after BTC had been hovering above the $55,000 support since November 19. Note that yesterday, the king of cryptocurrency surpassed $59,000 for the first time in days, and it was aiming at $60,000, but it failed to challenge that coveted level.
After failing to reach that level, BTC returned to around $58,000, where the digital asset was surfing for a while. According to reports, the value of Bitcoin dropped due to a new mutated COVID-19 variant.
Moreover, Bitcoin lost more than $4,000 plummeted below $55,000 for the first time since October 13.
As the largest digital asset fell, it also dragged altcoins down. Ethereum is down to $4,050, which means that it declined by around 6%. Dogecoin, Binance Coin, Solana, Polkadot, Avalanche, CRO, Litecoin, Ripple, and many more have also dropped in values – between 9% and 15% in less than 2 hours.
Overall, the result of this market crash is somehow painful for leveraged traders. According to On-chain data, liquidations have increased to over $300 million in an hour and over $600 million on a daily scale.