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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.
"Libra raises many serious concerns regarding privacy, money
laundering, consumer protection and financial stability," Powell
told the committee, adding that he did not think the project
could proceed unless those concerns were addressed.
The proposed cryptocurrency has drawn close scrutiny from
policymakers and financial regulators globally. Powell said
existing rules do not fit cryptocurrencies.
Other traders said the moves fitted within the pattern of
bitcoin's recent volatility, where double-digit intra-day price
moves have been common.
The biggest coin climbed nearly 55% in nine days after Facebook
unveiled its plans for Libra on June 18, touching an 18-month
high of nearly $14,000. The project has boosted hopes that
cryptocurrencies could gain wider acceptance.
(Reporting by Tom Wilson; Editing by Kevin Liffey)
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