- BoE Governor Andrew Bailey has warned that investors could lose all their money by investing in unbacked assets.
- Bailey warned investors that illicit players can take advantage of such situations.
- On Tuesday, the crypto market slumped further as the overall crypto market cap stood at US$961.33 billion with a trading volume of US$160.08 billion.
The aftereffects of the crypto crash of Monday, are already showing their impact in England as well. Several leading cryptocurrencies, such as Bitcoin and Ethereum, dropped to multiyear lows, eventually dropping the crypto market cap under US$1 Trillion.
On Tuesday, the crypto market continued to drag amidst the bearishness as the overall crypto market cap stood at US$961.33 billion with a trading volume of US$160.08 billion. The crypto market was down by 5.47% at 7:30 AM (GMT +1).
Bitcoin, extended its slump, losing another 11.38% and was trading at US$22,516.59 with a trading volume of US$73,36,71,61,259 in the past 24 hours. Ethereum, which on Monday had temporarily dropped below US$1000, was back to US$1,222.48 with a 24-hour trading volume of US$47,19,10,89,158.
Related read: Why is Flamingo (FLM) crypto trending?
As the increased volatility and bearishness continue to dominate market sentiments, the Bank of England (BoE) Governor Andrew Bailey once again reminds the citizens why one should be wary of investing in them. Governor Bailey believed that investors could be staring at losing all their money with the decline of unbacked assets.
‘Invest at your own risk’
Bailey warned the citizens that as cryptos lack intrinsic value, investing in such assets could result in market participants losing their entire money. While addressing Public Accounts Committee (PAC), Bailey referred to Binance and Celsius's decisions to temporarily halt withdrawals due to extreme market conditions.
The latest slump has raised several questions about whether, eventually, cryptos will go bust. This is reflected even in the fear and greed index, which is at its lowest. In fact, according to Alternative.me, the fear and greed index stands at a low of 8.
Bailey's comments have just added to the fear sentiment, which also suggested that crypto investments are dicey because illicit players take advantage of such situations.
Not the first time
Bailey has always been a strong opponent when it comes to cryptos usage. Last month too, Bailey had likened purchasers of crypto assets to hoarders of curios - saying, ''people collect all sorts of things''. Bailey had suggested that Bitcoin cannot be seen as a mode of payment, however, he did point out blockchain technology was undoubtedly important.
Besides BoE, the Financial Conduct Authority (FCA) has also been vigilant regarding cryptos. The FCA felt that even though it's hard to stop individuals from investing in cryptos, it's also essential that they realize its risks.
The recent crypto crash has once again raised concern about the value of cryptos. Hence it is also important to keep it in mind that cryptos are riskier assets and need strict monitoring and research for investors to invest in them
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