Bitcoin (CRYPTO:BTC) has dropped below $54,000, reaching its lowest point since February 2024, contributing to a significant downturn in the cryptocurrency market.

The overall market capitalisation fell to $2.07 trillion, an 8.6% decrease in 24 hours.

Factors such as the German government's liquidation of Bitcoin holdings and the impending repayment of Mt. Gox creditors, involving over 140,000 BTC, have likely influenced the price drop.

Over-leveraged traders faced nearly $700 million in liquidations due to BTC's decline.

Leading altcoins, including Ripple (CRYPTO:XRP) and Binance Coin (BNB), experienced even greater losses, with Ripple falling below $0.40.

Despite the widespread losses, a few cryptocurrencies like Fasttoken (CRYPTO:FTN) and Leo Token (CRYPTO:LEO) have seen modest gains.