Mon, Jun 15, 2020 - 4:39 PM<\/p>\n
[HONG KONG] Bitcoin slid below US$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.<\/p>\n
The largest cryptocurrency tumbled as much as 5.1 per cent Monday and recovered to about US$9,100 as of 8.55am 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.<\/p>\n
Bitcoin has flirted with US$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.<\/p>\n
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.<\/p>\n
\"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 US$10,000 level and are now coming back down. I expect US$8,500 to hold, but if not we're looking at US$7,700 and then US$7,100.\"<\/p>\n
The wider Bloomberg Galaxy Crypto Index declined on Monday as much as 6.5 per cent as rival digital currencies including Ether, XRP and Litecoin also retreated.<\/p>\n
BLOOMBERG<\/p>\n
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