Bitcoin plunges nearly $2,200 in minutes, other large-cap cryptocurrencies suffer

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Bitcoin plunges nearly $2,200 in minutes, other large-cap cryptocurrencies suffer

The world's largest coin by market cap plunged nearly $2,200 in less than a few minutes in mid-European hours. Other large-capcryptocurrencies fell as much as 10%.

In the early-Asian hours, the price of digital currency was $58,000. It didn't break the $59,000 resistance level earlier this month, a move that is part of a wider downtrend since the $68,000 level from earlier this month.

Nearly $106 million worth ofBitcoin futures were liquidated on Monday, according to data from Coinglass. The financial products that allow traders to gain exposure to a particular asset without holding that physical asset are called futures. The market for cryptocurrencies is worth billions of dollars daily, and they are a lucrative market.

After the plunge inBitcoin, other large-capcryptocurrencies likeEthereum -- 7% XRP -- 9% Solana 6% and Polkadot -- 7% saw even higher liquidations thanBitcoin -- at over $114 million - data from Coinglass shows.

A new variant of COVID was found in South Africa in the fall. Risk assets, such as emerging market currencies, bonds and stock fell this morning, while treasuries and safer European bonds surged.

There is a danger off happening from Japan to Africa due to concerns about a new virus variant in South Africa, but countries like the U.K. are acting quickly to curtail its spread, said Justin Tang, head of Asian research at United First Partners. Even if the new variant overstays, there is a playbook for such situations, given that the world has gone through this before with Delta.