Bank of England deputy governor Jon Cunliffe has warned crypto investors to brace themselves for a tough time as financial conditions tighten.<\/p>\n
Asked if rising interest rates would increase pressure on cryptocurrencies, Cunliffe responded, “Yes, I think as this process continues, as (quantitative tightening starts in the U.S., I think we’ll see a move out risky assets. When there’s move out of risky assets, you would expect the most speculative assets to be hit the ones most affected.”<\/p>\n
Cryptocurrencies have suffered a massive drop in value in recent weeks, causing cryptocurrencies to lose $200 billion in market value.<\/p>\n
The collapse of stablecoin TerraUSD on Monday also hurt the cryptocurrency market in general: The world’s largest cryptocurrency Bitcoin fell to 25,401 dollars on Thursday, the lowest level since December 2020. It hit a record high of 69,000 dollars in November.<\/p>\n
Experts say investors are retreating from risky investments because of expected tighter regulation, and while cryptocurrencies may have recovered, experts have warned that the worst is yet to come.<\/p>\n