Bitcoin's drop below $55,000, currently at $54,200, could be affected by a number of factors.

The market crash resulted in $670 million in liquidations, with the largest liquidation taking place on cryptocurrency exchange Binance.

Bitcoin continues to plummet, falling to $54,000 for the first time today (July 5). Currently, it is trading at around $54,200, its lowest in the past five months.

Bitcoin's decline can be attributed to several important factors. One example is the German government's decision to liquidate a large amount of its BTC.

The upcoming payment of creditors of the cryptocurrency exchange Mt. Gox shutdown and the chaos surrounding the US presidential election (scheduled for November this year) may also play a role. The cryptocurrency exchange moved more than $2.7 billion in BTC to a new address, adding fuel to the fire.

As expected, the recent market crash negatively affected traders who used excessive leverage. Data from CoinGlass shows that total liquidations over the past 24 hours increased to around $670 million. Bitcoin (BTC) accounts for about 35% of the total, while Ethereum (ETH) comes in second.

Top altcoins, such as Solana (SOL), Dogecoin (DOGE), Ripple (XRP), Shiba Inu (SHIB), and more, are also plummeting, contributing to massive liquidations.

The largest single liquidation order took place on Binance. It is worth nearly $19 million and involves the ETH/USDT trading pair, according to CoinGlass.