chaotic trading on Wednesday, the price of the cryptocurrency fell by almost 30 per cent to $30,000 (£21,000). This amounted to a drop of more than 50 per cent since mid-April, when Bitcoin hit record highs of more than $64,000.
This sell-off was predicted by critics for months now, as many claimed that the currency has no intrinsic value. The European Central Bank has compared the coin’s speedy rise to other financial bubbles, while the governor of the Bank of England, Andrew Bailey, warned investors that they should brace themselves for a complete loss of funds if they dabble in digital currencies.
Sharing similar views, several state-backed organisations in China issued warnings, in which they claimed that Bitcoin is not “a real currency” and that it provides no protection to consumers if they lose money from cryptocurrency investment transactions. Moreover, they also pointed out that the recent untamed swings in prices disrupt economic and financial order, while seriously violating people’s asset safety.
