Ted Cruz (R-TX) – a crypto-supportive Republican senator – believes a US Central Bank Digital Currency (CBDC) is likely to become a reality. The politician believes both the Federal Reserve and the White House currently want one, and that the Democratic party won’t vote against its issuance. In an interview published by What Bitcoin Did on Friday, Cruz discussed the current political climate surrounding crypto. In general, the senator believes Democrats are more opposed to the industry than Republicans, due…
The Financial Conduct Authority (FCA) has warned its consumers about investing in high yield investment (HYIP) crypto–assets. This comes after a major dump in the market that saw $200 billion wiped off the total crypto market cap.
Cryptocurrencies Pose High Investment Risks
The FCA revealed this warning in a statement released today highlighting different aspects of crypto investing. The regulator revealed that price volatility, product complexity, and high fees associated with cryptos make it a complex investment asset.
It continued by stating that crypto investors are unlikely to have access to consumer protection institutions leaving investors at the risk of losing all their money if things go wrong with the investment.
The regulatory body stated that investors should be ready for losses when investing in crypto-assets. The FCA also informed companies offering crypto-related services to comply with relevant regulations within its jurisdiction. It should be noted that the FCA banned the sales of crypto derivatives in the UK last week. The decision had caused a major stir in the UK crypto community, but the FCA insisted it was made to protect its consumers.
Crypto Market Suffers Major Correction
This latest warning from the FCA comes amid a major drop in the crypto markets in the past 48 hours. This latest correction came as a surprise given the recent bullish rally of Bitcoin (BTC) since the start of the year.
After hitting a new all-time high of nearly $42,000 on January 8, BTC suffered a massive correction today. Bitcoin dipped close to 20% in the early hours of today, wiping out nearly $7,500 from its price. Bitcoin dropped briefly below $33,000, and this dump led to a ripple effect in the market. About $200 billion has been wiped from the total market cap, which hit $1 trillion last week.
As expected, altcoins have also dipped in price, with the top 10 altcoins trading in double digits deficit. Leading altcoin Ethereum is currently down by 16.9% and is currently hovering around the $1,133 mark. Embattled cryptocurrency XRP has lost most of the gains it achieved in the past week. XRP is down by 18% and is currently trading at $0.2967 at the time of publication.
According to key crypto analysts, the correction was good for the market that had experienced an uncharacteristic bullish movement in 2021. It is expected that Bitcoin will bounce back from the setback as it looks to move towards uncharted territory.