Bitcoin Drops Below $10,000 a Coin as China Cut Lending Rate

• Bitcoin Drops Below $10,000 a Coin as China Cut Lending Rate

The world’s most dominant cryptocurrency Bitcoin dropped $10,495 a coin it traded a week ago to $9577 on Thursday during the Asian trading session.

However, the decision of the People’s Bank of China to cut lending rate in an effort cushion and stimulate growth in the world’s second-largest economy hurt the attractiveness of the cryptocurrency on Wednesday, the day of the announcement and Thursday when most traders are likely locking in profit to reassess the market.

“It could be a technical move with highly leveraged derivatives positions getting called,” said Emmanuel Goh, who runs crypto-derivatives tracker Skew. He noted that some long perpetual swap positions got liquidated on Bitmex around the time of Wednesday’s drop.”

Those traders that liquidated their positions on Bitmex likely did after China’s report on lending rate cut released on Wednesday.

Still, investors are not confident giving the rising number of coronavirus victims to around 75,000 and surged in the number of death to about 2,000.

Gold, a more reliable haven asset, rose to a seven-month high on Thursday as investors jumped on it to averse systemic risk associated with global uncertainty.

In the last six days, Bitcoin has lost around $1000 against the US dollar since peaking at $10,495 on the 13th of February. The digital currency is currently trading at $9546 a coin, the next support level is $9017 as shown in the chart.