Cryptocurrency investors alarmed as Bitcoin prices drop dramatically

Cryptocurrency investors alarmed as Bitcoin prices drop dramatically
  • UK’s financial watchdog warn cryptocurrency investors ahead of Bitcoin’s dramatically dropping prices.
  • Digital currency- Bitcoin hit an all-time high of around USD 42,000 last week and has since fallen close to USD 35,000.

Cryptocurrencies have been gaining immense popularity owing to their ability to stand as an easy mode of transaction digitally. However, the currency has been making headlines due to the declining prices of Bitcoin. As per credible sources, the United Kingdom’s financial regulator has recently announced that the volatile price of Bitcoin fell from an all-time high of $42,000, to $35,000, leaving the cryptocurrency investors in a fit of the situation.

For the record, Bitcoin had in the past years observed a startling rise of more than 300% and grabbed attention of the public and institutional investors but has now dropped to about 15%.

In light of the significant drop in Bitcoin cost, Britain’s Financial Conduct Authority has released a statement that people looking to invest a wholesome in such types of product should be well prepared of losing their money given to the current situation.

It was also mentioned that price volatility in cryptoassets, merged with the inherent difficulties of valuing digital assets reliably places consumers at relatively higher risk of losses.

Apparently, this is not the first ever collapse witnessed in cryptocurrency prices. Memories of the huge drop down in Bitcoin’s price from 2017 to early 2019- when it dropped from $20,000 to $4,000 or below- is still haunting regulators.

That said, in an attempt to look after the slashing down Bitcoin prices, regulators are looking forward to tightening the rules about cryptocurrencies. In this case, the FCA has required all UK cryptocurrency companies to register with it, as part of regulations developed to tackle money laundering.

Additionally, the United States Financial Crimes Enforcement Network, in December, had come up with an idea that companies could be required to collect information on cryptocurrency wallet holders.

Source Credit: https://www.businessinsider.in/stock-market/news/cryptocurrency-investors-could-lose-all-their-money-uk-regulator-warns-as-bitcoin-price-drops-from-all-time-high/articleshow/80215791.cms