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Bitcoin extends drop to below $550 as sentiment remains shaky

Published 06/15/2014, 10:19 AM
Bitcoin extends drop to below $550
BTC/USD
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Investing.com - Bitcoin remained under pressure on Sunday, as appetite for the digital currency remained weak after the U.S. announced plans last week to auction nearly 30,000 bitcoin seized from the infamous online black market Silk Road.

BTC/USD fell to a session low of $538.38 on Slovenia-based BitStamp, the weakest level since May 25. Prices last traded at $555.46 during U.S. morning hours, down 5.69%, or $33.53.

The price of a Bitcoin on Bulgaria-based BTC-e retreated 6.96%, or $41.57, to trade at $556.01.

According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency declined 2.79% to trade at $555.75.

The U.S. Marshals Service said on June 12 that it plans to auction approximately 30,000 bitcoins, valued at nearly $17.3 million, that were seized as part of the Federal Bureau of Investigation's crackdown on the Silk Road online marketplace last year.

The auction, which is expected to take place on June 27, will be sold in nine blocks of 3,000 bitcoins and one of 2,657 coins.

Bitcoin prices rallied to $683 on June 2 amid speculation the digital currency will become more mainstream. U.S. satellite service provider DISH Network and online travel website Expedia both stated that they will start accepting bitcoin later this year.

Bitcoin is digital cash and is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers.

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