Bitcoin investors should be careful; Bitcoin price (BTC) continues to make the sideways movement as the global investment communities are still unsure about the future of cryptocurrencies. The debate for its utilization as an alternative currency and medium of exchange has been going on for years. Bitcoin price was hammered from the $20,000 mark at the beginning of the year to only $6,000. This was after intellectuals, regulators and global leaders stressed on the need for regulating cryptocurrencies during the World Economic Forum.
Regulators and senior market analysts have turned significantly bearish on digital currencies. They don’t appreciate investments in bitcoin and other digital currencies – indeed they are predicting an instant crash and massive risk of losing the investment.
Bitcoin’s trading volume has decreased substantially in the last few weeks following bearish comments from key players. The reports show that bitcoin transactions dropped to the lowest level in two years, while Google trends-data indicated a drop of 80% in searches for bitcoin.
U.K. Could Take Stronger Action against Cryptocurrencies
The U.K Prime Minister Theresa May had promised to carefully look at bitcoin and other digital currencies to avoid the illegal movement of wealth. The regulators from U.K. aren’t sending positive signals, suggesting strict regulatory actions from the one of the significant cryptocurrency market.
While Bangladesh, India, China and several other countries have already banned cryptocurrency trading, amid the threat of money laundering and tax evasion – poor response from European and British regulators poses a risk for the possible crash in prices.
Bitcoin investors should now take steps to protect their investment from risks that could result in complete losses, the Bank of England’s Chief Economist has warned.
Followed by harsh remarks from the Bank of England’s governor, the Chief Economist Andy Haldane warned for the immediate price crash.
He said: “There are lots of potential risks there. One of which is the danger to the consumer from buying into this stuff. If you want to invest in bitcoin, be prepared to lose all your money. That would be my serious warning.”
Featured Image: Twitter