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As Bitcoin, Ethereum, Ripple’s XRP And Litecoin Lose Billions, Watchdog Issues Stark Crypto Price Warning

As Bitcoin, Ethereum, Ripple’s XRP And Litecoin Lose Billions, Watchdog Issues Stark Crypto Price Warning
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Bitcoin, after rising non-stop in the past few weeks, is finally taking a breather.

Bitcoin’s price has fallen about 15% in the past 24 hours, dragging the broader cryptocurrency market down and wiping out billions of dollars from major tokens like Ethereum, Ripple’s XRP, and Litecoin. Bitcoin briefly dropped to $32,300, down from over $42,000 just two days ago, before rebounding somewhat.

With the bitcoin and cryptocurrency market in flux, the UK’s Financial Conduct Authority has issued a stark warning to people considering jumping on the cryptocurrency bandwagon – they should be “prepared to lose all their money”.

More from ForbesAs Bitcoin smashes past $40K, data reveals what’s behind the massive 2021 Bitcoin price boom

“Investing in crypto-assets, or investments and related lending, generally involves the assumption of very high risk with investor funds,” the UK’s Financial Conduct Authority said in a statement.

“If consumers invest in these types of products, they should be prepared to lose all of their money. As with all high-risk and speculative investments, consumers should make sure they understand what they are investing in, the risks associated with the investment, and any regulatory safeguards in place.”

The price of Bitcoin soared to an all-time high of more than $40,000 per bitcoin in the past week, rising as institutional investors excited about cryptocurrency and payments giants like PayPal.

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Add their support.

Elsewhere, Ethereum, the world’s second-largest cryptocurrency after Bitcoin, hit a new all-time high last week, three years after its 2017 boom and ensuing recession.

The rally saw the value of the bitcoin and cryptocurrency market exceed $1 trillion for the first time.

Bitcoin was pushed to a 2017 high of $20,000 per bitcoin in December after London-based Ruffer Investment Management revealed a $745 million bitcoin bet. Massachusetts Mutual Life Insurance announced that it had purchased $100 million in bitcoin for its Public Investment Fund the previous week.

Bitcoin price uptrend kicked off in October due to payment giant PayPal

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Announcing that it will start supporting Bitcoin and a few smaller cryptocurrencies. The price of Bitcoin has tripled since then – with many in the crypto community predicting it would continue to climb.

“A lot has been said about the fact that Ruffer, an investment firm known for its conservative investing style, recently invested in bitcoin for the first time,” said Laith Khalaf, financial analyst at AJ Bell, in comments via email.

“However, it is important to note that the investment manager has only invested about 2.5% of the portfolio that would otherwise be invested in more traditional assets. Even if things go wrong in the cryptocurrency market, they are protected in their other investments.”

More from ForbesElon Musk, the richest man in the world, wants to be paid with bitcoin

Analysts explained the recent sale, noting bitcoin’s “lean liquidity”.

“Perhaps betraying it as a risky asset in and of itself, Bitcoin and other cryptocurrencies are under selling pressure today as well as bullish momentum in prices begins to diminish and even threatens to volatility,” IG Market Analyst Kyle Rhoda said in the comments via email.

“Bitcoin has always been a victim of poor liquidity, and just like last week, the drop seen so far in the cryptocurrency can be bought quickly this evening when trading conditions become more healthy. Of course, after such an extraordinary rise in recent weeks to historically overbought levels, it can be said Bitcoin is another asset that is late in the decline.”

The Bitcoin boom of 2020 has been announced by a number of prominent investors who have dubbed Bitcoin an emerging inflation hedge, using it to hedge against what they see as damage to dollar stability through unprecedented government spending and money printing in the UAE. After the corona virus pandemic.

This support has helped institutional investors and Wall Street giants soften their skeptical view of Bitcoin and cryptocurrencies.

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