LONDON (Reuters) – Bitcoin dipped nearly 8% on Thursday, extending losses the day after U.S. Federal Reserve Chairman Jerome Powell known as for a halt to Facebook’s Libra cryptocurrency project till considerations starting from privateness to money-laundering have been addressed.
The unique cryptocurrency BTC=BTSP initially fell 7.7% to $11,164 in early morning commerce, following a 3.8% slide on Wednesday after Powell’s testimony on financial coverage earlier than the U.S. House of Representatives Financial Services Committee. It was final down 4.5%.
Other main cryptocurrencies together with Ethereum BTC=BTSP and XRP’s Ripple XRP=BTSP fell by related ranges.
“This is a direct response to the Powell testimony and comments on Facebook’s Libra and the implications that could have for the entire cryptocurrency space,” stated Craig Erlam, senior market analyst at FX buying and selling platform OANDA.
“Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability,” Powell informed the committee, including that he didn’t assume the project might proceed except these considerations have been addressed.
The proposed cryptocurrency has drawn shut scrutiny from policymakers and monetary regulators globally. Powell stated current guidelines don’t match cryptocurrencies.
Other merchants stated the strikes fitted inside the sample of bitcoin’s latest volatility, the place double-digit intra-day value strikes have been widespread.
The greatest coin climbed almost 55% in 9 days after Facebook unveiled its plans for Libra on June 18, touching an 18-month excessive of almost $14,000. The project has boosted hopes that cryptocurrencies might acquire wider acceptance.
Reporting by Tom Wilson; Editing by Kevin Liffey