Bitcoin price CRASH: $170billion wiped off value of cryptocurrency as BTC bubble bursts

Bitcoin: Cryptocurrency jumps to record high reveals expert

Bitcoin prices as of 10am GMT on Monday are hovering around the £26,748 mark, according to the latest Coindesk data. The last 24 hours have seen bitcoin (BTC) prices fall by 11.04 percent – an unexpected pullback after recent rallies saw BTC skyrocket past £30,352 ($41,269) for the first time in 12 years. The plunge comes amid warnings from the Financial Conduct Authority (FCA) about the risks of investing in cryptocurrency.

The UK-based regulatory body said on Monday investing in crypto assets “involves taking very high risks with investors’ money”.

The FCA added: “If consumers invest in these types of product, they should be prepared to lose all their money.”

Bitcoin has been rallying since October 2020 with prices soaring by a staggering 300 percent.

Analysts, however, warned the crypto market was due a correction.

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And on Monday the cryptocurrency market’s capitalisation fell from about £880billion ($1.1trillion) to about £725.16billion ($978.22billion), according to CoinMarketCap data at 10.19am GMT

The three leading cryptocurrencies, bitcoin, ethereum and tether, are all down on the last 24 hours.

Naem Aslam, the chief market analyst at Avatrade, said the weekend’s plunge is a “healthy correction”.

He predicts BTC will find some stability between the £20.76K and £22.2K ($28K and $30K) mark.

They should be prepared to lose all their money

Financial Conduct Authority

Simons Chen, executive director of investment and trading at the Hong Kong-based Babel Finance, also said: “The correction we saw was expected as we believe the BTC price surge recently from under $20,000 to $40,000 in the past four weeks will induce sell pressure.”

However, not all crypto players seem concerned about the price dip.

David Schwartz, chief technology officer at Ripple, tweeted: “Wow, *huge* bitcoin crash.

“Prices have fallen all the way down to yesterday’s levels.”

Bitcoin has proven on past occasions to be a volatile financial option, with some experts calling it a bubble waiting to burst.

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Bitcoin in a ‘curious place' after significant rise claim experts

Economist David Rosenberg, president of Rosenberg Research, said earlier this month: “The parabolic move in bitcoin in such a short time period, I would say for any security, is highly abnormal.”

The Bank of America’s chief investment strategist has also warned of the “mother of all bubbles” in the growing bitcoin market.

Michael Hartnett of the Bank of America Securities said on Friday bitcoin “blows the doors off prior bubbles”, although he did not say BTC would crash like other bubbles of the past.

December 2017 infamously saw bitcoin crash after skyrocketing to just under $20,000 (£14,825) and then falling to about £2,222 ($3,000).

According to the FCA, there are a number of reed flags involved in crypto investments.

The financial watchdog warned against misleading marketing surrounding cryptocurrencies, a lack of consumer protection and volatile prices that create a high-risk scenario for investors.

The FCA said: “As with all high-risk, speculative investments, consumers should make sure they understand what they’re investing in, the risks associated with investing and any regulatory protections that apply.”

Some investors, however, are bullish about bitcoin’s prospects in the coming months to years.

One expert predicted BTC could surpass the $74,128 ($100,000) mark in the next two to three years.

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