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On Monday (11), the entire cryptocurrency ecosystem evaporated more than 200 billion US dollars. At the same time, the British Financial Conduct Authority (FCA) issued an “airstrike” warning that cryptocurrency investors should be psychologically prepared to lose all their money. .
On Monday, Bitcoin and other digital currency assets evaporated more than 200 billion US dollars overnight. As of 10:30 p.m. Taipei time on Monday, the price of Bitcoin (BTC) had fallen from a 24-hour high of $ 39,934.76 to more than $ 7,000. US $ 31,115, with an interim report of US $ 32,710.
Ether (ETH) has fallen by $ 950 from a high of $ 1,325, temporarily trading at $ 1,022.
Analysts believe that Monday’s sharp drop in crypto assets indicates that crypto investors should turn a profit.
Simons Chen, chief investment and trading executive at Babel Finance, a cryptocurrency financial services company, said: “The correction is expected. The price of Bitcoin has soared from less than $ 20,000 to $ 40,000 in the last four weeks, which has led to selling pressure. Bitcoin’s drop from the $ 40,000 mark may be triggered. ” The incentive to make a profit. “
Bitcoin has risen more than 340% in the last 12 months and last week hit a record of just under $ 42,000. When the cryptocurrency market is volatile, investors are still considering whether to invest in cryptocurrencies.
The British Financial Conduct Authority (FCA) warned that they must be psychologically prepared and may lose all their money in the future.
The UK Financial Conduct Authority stated: “FCA is aware that some companies are providing investments in crypto assets, or loans or investments related to crypto assets. These investments are expected to generate high returns, but if consumers invest in this type of products, you should be mentally prepared to lose all your money. “
The FCA cautioned that if there are any issues with investments related to encrypted assets, consumers are unlikely to receive the Financial Public Comment Service (FOS) or the Financial Services Compensation Mechanism (FSCS), and should remain vigilant for this. reason.
AJ Bell financial analyst Laith Khalaf said that regulators are obviously concerned that the high risk of investing in cryptocurrency itself will escalate due to fraudulent activities. Those unregulated marketing copies target consumers, only emphasizing high rewards but ignoring potential risks. “
However, some Wall Street analysts remain bullish on Bitcoin’s long-term gains.
Jehan Chu, founder of cryptocurrency venture capital and trading company Kenetic Capital, said that Bitcoin’s decline (today) may be a good entry point for investors to buy on dips.
Jehan Chu believes: “For us, this kind of short-term consolidation is natural and necessary. For long-term investors, it is a good entry point, because we are optimistic that Bitcoin will quickly reach $ 50,000 this season. In the end this year, it will reach US $ 100,000 ”.
JP Morgan Chase (Xiao Mo) regards Bitcoin as digital gold, a safe-haven asset, and a tool to hedge against inflation. A recent report from Xiaomo showed that in the long term, Bitcoin can hit $ 146,000 as it competes with gold as an alternative currency.
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