Investors could lose all their money, warns Bank of England Governor

June 14, 2022 06:46 PM AEST | By Manu Shankar
Follow us on Google News:


  • 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, 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. 

Related read: When will Star Atlas (ATLAS) crypto end its bearish rally?

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

Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instruments or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete, or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Top LSE Listed Companies