A collection of Bitcoin (virtual currency) tokens are displayed in this picture illustration taken December 8, 2017. REUTERS/Benoit Tessier/Illustration
LONDON (Reuters) – Bitcoin dipped almost 8% on Thursday, extending losses the day after U.S. Federal Reserve Chairman Jerome Powell called for a halt to Facebook’s Libra cryptocurrency project until concerns ranging from privacy to money-laundering were addressed.
The original cryptocurrency BTC=BTSP initially fell 7.7% to $11,164 in early morning trade, following a 3.8% slide on Wednesday after Powell’s testimony on monetary policy before the U.S. House of Representatives Financial Services Committee. It was last down 4.5%.
Other major cryptocurrencies including Ethereum BTC=BTSP and XRP’s Ripple XRP=BTSP fell by similar levels.
“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,” said Craig Erlam, senior market analyst at FX trading platform OANDA.