Bitcoin traded down at US$6,617 on the first-day of the long Easter weekend on Friday – its lowest-level since February 6 when it broke below US$6,000, as new European Union (EU) rules aimed at reducing leveraged trades offered by brokers prompted a widespread sell-off on fears of similar measured being launched in Asia.
“Leverage has been a big driver for bitcoin trading. US$6,000 is a key psychological level, and if we broke it (again) then bitcoin would be poised for a further downward side, which I wouldn’t be surprised might eventually hit US$2,500,” said Stephen Innes, head of Asia-Pacific trading for online currency trading platform Oanda.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.