Bitcoin drops below $9,000 level for the first time since May
Hindustan Times
15 June 2020
Posted by: Harshit Sabarwal
Bitcoin slid below $9,000 on Monday for the first time since May,
joining a downdraft in global equities begun during Asia hours amid
growing concern about the risks of a second wave of coronavirus
infections. The largest cryptocurrency tumbled as much as 5.1%
Monday and recovered to about $9,100 as of 8:55 a.m. in London,
according to consolidated pricing data from Bloomberg. For the first
time since the end of April, the token dipped below its 50-day moving
average, a level that’s considered a point of resistance for some
traders.
Bitcoin has flirted with $10,000 since May, failing to
sustain a rally above that key psychological level after the closely
watched “halving” industry event that reduced the amount of the
cryptocurrency earned by miners. Stocks slid globally on Monday
alongside US equity futures, in an echo of last Thursday’s risk-off
mode. Chinese economic data Monday disappointed investors, with a
smaller bounce back in May than economists expected. On the virus front
the US showed a pick-up in cases, Tokyo reported a jump of its own over
the weekend and China is racing to contain a new outbreak in Beijing
that reached nearly 100 infections.
“I think it’s definitely part of the broader sell-off that we also
saw in equities last week,” said Vijay Ayyar, head of business
development with crypto exchange Luno. “We tapped liquidity at the
$10,000 level and are now coming back down. I expect $8,500 to hold, but
if not we’re looking at $7,700 and then $7,100.” The wider
Bloomberg Galaxy Crypto Index declined on Monday as much as 6.5% as
rival digital currencies including Ether, XRP and Litecoin also
retreated.
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