On Thursday, Bitcoin dropped down to the lowest in two years. The currency earlier fell by 20%, but this time it went down 13% to $985.68 per coin as of 11:10 a.m. ET.
Bitcoin, before dropping down to the lowest, crossed the $1,000 mark on he first trading day of the new year. But now it has dropped down from that level.
Such huge ups and downs in the value of Bitcoin have been a norm, but lately it has been doing well and has been stable in the market. The reason for its surge was the renewed interest from China. Bitcoin in China became a strong currency, whereas its own currency Yuan continued to fall.
Now the reason behind this massive downfall of Bitcoin is Yuan experiencing its biggest two-day surge on Thursday. It happened because the Chinese government made all efforts to stop the outflows from the country. The overnight borrowing costs in Hong Kong went up to 100%.