Investing.com - Bitcoin declined on Wednesday as speculators sold the virtual currency ahead of the U.S. Marshal’s planned auction of nearly 30,000 Bitcoin seized from the infamous online black market Silk Road later in the week.
Bitcoin (BTC/USD) fell to a session low of $564.36 on Slovenia-based BitStamp, before trimming losses to last trade at $565.00 during U.S. morning hours, down 3.58%, or $21.00.
The price of a Bitcoin on Bulgaria-based BTC-e dropped 3.65%, or $21.26, to trade at $561.33.
According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency shed 1.6% to trade at $565.86.
The U.S. Marshals Service will auction approximately 30,000 Bitcoins, valued at nearly $17.3 million, on June 27.
The virtual currency up for auction was seized as part of the Federal Bureau of Investigation''s crackdown on the Silk Road online marketplace last year.
The auction will be sold in nine blocks of 3,000 Bitcoins and one of 2,657 coins.
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.