The Bank of England said a $2 trillion plunge in the value of cryptoassets underscores vulnerabilities in the market and the need for tougher law enforcement and regulation.
The market capitalization of digital assets has tumbled to about $900 billion from a peak of almost $3 trillion in late 2021, the BOE’s Financial Policy Committee said Tuesday.
The “extreme volatility” in recent months revealed weakness in the market including liquidity mismatches that led to fire sales, and participants unwinding leveraged positions. Those features of the market have the potential to amplify further declines in prices, the central bank said.
Regulators in the UK and Europe have been hardening their rhetoric against the industry, saying they’re concerned that contagion from the crypto market could damage the broader financial system.
The BOE in December repeated its warning that the rapid growth of cryptocurrency assets could pose a risk to the stability of the UK financial system. In October,...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...