In this materialistic and money-focused world, there are people who care about financial well-being of others. Steven Maijoor, the Chair of the European Securities and Markets Authority, is one of them. He was so kind to give a valuable piece of advice to traders.
The expert warned bitcoin owners about risks of losing all their funds. “It [bitcoin] has an extremely volatile value, which undermines its use as a currency,” Mr. Maijoor said. With the current dynamics of cryptocurrencies, his warnings sound more serious than they would be at the times when bitcoin cost almost USD 20,000. Most market participants got really worried over Steven Maijoor’s comments. On January 16, the bitcoin exchange rate plunged by 12% to USD 12,255, hitting the lowest level since December 5, 2017. After that, bitcoin registered a further fall of 20%. However, it was not a full stop, as the cryptocurrency broke below the psychological level of USD 10,000.
The bitcoin exchange rate has been plummeting since early January after South Korea shocked investors with its intentions to ban cryptocurrency trading. Later, however, the authorities specified their plans, saying that the ban was discussed but it would not be imposed in the nearest future.
