Bitcoin drops 8 percent in value, analysts attribute loss to 'technical trading in thin liquidity'

Bitcoin fell more than 8 percent on Wednesday, plumbing to a five-day low, with traders and analysts ascribing the losses to technical trading in thin liquidity.

The biggest cryptocurrency by market capitalisation was last down 7.6 percent at $9,936, after touching $9,926 earlier. Traders said there did not appear to be a specific news catalyst for the moves, with some citing the possibility of large individual orders pressuring the broader market lower.

Other major digital coins such as Ethereum and Ripple’s XRP also fell by around 7 percent.

In more recent news about Bitcoin , an Indian government panel has recommended banning all private cryptocurrencies and a jail term of up to 10 years and heavy fines for anyone dealing in digital currencies, which could signal the end of them in India.

The panel drew up a report and draft legislation, which will be examined by the government and regulators before they make a final decision, the government said in a statement on Monday.

The panel has, however, asked the government to consider the launch of an official government-backed digital currency in India, to function like bank notes, through the Reserve Bank of India.

With inputs from Reuters