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Bitcoin extends slump on Goldman Sachs report

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Bitcoin sank further Thursday, extending the previous day's slump sparked by reports US investment banking giant Goldman Sachs has pulled back from immediate plans to open a trading desk for the virtual currency.

[LONDON] Bitcoin sank further Thursday, extending the previous day's slump sparked by reports US investment banking giant Goldman Sachs has pulled back from immediate plans to open a trading desk for the virtual currency.

Bitcoin has dived almost ten per cent since Wednesday to near a nine-month low.

Around 1300 GMT, it stood at US$6,400.74, down from US$6,949.01 Wednesday, according to data compiled by Bloomberg.

Rival cryptocurrencies ethereum and ripple meanwhile slumped by about 20 per cent and 10 per cent respectively since the Business Insider said Goldman suspended plans for a bitcoin-linked trading exchange in favour of other digital currency efforts.

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The dive saw market capitalisation of so-called cryptocurrencies dive around US$40 billion over 24 hours, specialist market media reported.

The decision came amid regulatory uncertainty over bitcoin, Business Insider added, citing sources.

The US banking titan has not directly commented on the report.

Goldman had recruited Justin Schmidt from hedge fund Seven Eight Capital to prepare the bank for transactions involving bitcoin in case of a regulatory green light.

Other large financial firms have meanwhile also pulled back on digital money projects with bitcoin prices plunging this year.

AFP