Bitcoin extends losses after Fed chief urges halt to Facebook Libra

Bitcoin dipped almost 8 per cent on Thursday, extending losses the day after US 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 initially fell 7.7 per cent to $11,164 in early morning trade, following a 3.8 per cent slide on Wednesday after Powell’s testimony on monetary policy before the US House of Representatives Financial Services Committee. It was last down 4.5 per cent. Other major cryptocurrencies including Ethereum and XRP’s Ripple 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.