The world’s largest and best-known cryptocurrency fell nearly 30 per cent on Friday from an all-time high of £14,798 to £8,321 bled more than a quarter of its value in a single day. It’s been a roller coaster ride for the cryptocurrency over the past few days.
But as of yesterday morning the digital currency was up again to more than £11.93.
Bitcoin has risen more than tenfold this year and doubled in just seven weeks, but if the currency goes bust, chaos could spill into the stock market, experts have said.
The unregulated currency’s volatile moves and the interest shown by private investors have sparked concerns among financial regulators across the world.
Sir Jon Cunliffe, the Bank of England’s deputy governor for financial stability, has warned of a bubble, saying that when prices rise so fast “investors should do their homework and think carefully”.
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Mr Hauser said: “Nobody knows what stands behind this. It looks like a bubble, smells like a bubble, acts like a bubble and feels like a bubble.”
Regulation was necessary “because the public is unprotected”, he said.
On Monday, Israel became the latest country to announce a crackdown. Shmuel Hauser, chairman of the Israel Securities Authority, said that he would propose regulation to ban companies based on bitcoin and other digital currencies from trading on the Tel Aviv Stock Exchange.
China has closed bitcoin exchanges and has banned so-called initial coin offerings, which allow companies to raise funds while bypassing regulations.