Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,165 trillion. Bitcoin is up by over 2% after a rollercoaster of a week. Ethereum decreased by almost 1% over the past seven days. XRP gained more than 15% in value this week. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector decreased the total value of protocols…
Former Iranian Financial Chief Warns Of The Danger In Bitcoin
Nasser Hakimi, the former deputy governor of the Central Bank of Iran, has warned Iranians about investing in Bitcoin. This comes on the back of the growing popularity of cryptocurrencies in Iran.
A major investment risk
Hakimi revealed his opinion on cryptocurrencies in an interview with local news outlet Tasnim News Agency. According to him, bitcoin is a volatile asset that poses significant financial risks to investors.
He further added that investors should exercise caution in purchasing bitcoin and desist from investing until the market is regulated. The former CBI director also urged the Iranian government to provide definite regulations to guide cryptocurrencies. At the same time, he warned that financial disaster could happen in the future without a concrete cryptocurrency framework.
This is not the first time that Hakimi has warned against investing in cryptocurrencies. In 2017, he warned investors against buying bitcoin and cryptocurrencies during the crypto boom era. “We ask investors and the public to enter this field with increased caution because they could lose their money,” he said.
Latest bull rally different from that of 2017
Although Hakimi’s warning about bitcoin in 2017 was proven correct with the subsequent crypto carnage that ensued. The crypto market has matured since then, and this latest bullish run is different from that of 2017.
A growing number of financial institutions are allocating part of their financial balance for Bitcoin and other crypto-assets. The past six months have seen established financial giants like MassMutual and Fidelity jump on the bitcoin train.
The payment processing giant PayPal added bitcoin to its list of accepted currencies in the latter half of 2020, and rival firm Cashapp already allows users to purchase bitcoins. In February, automobile giant Tesla also revealed that it had purchased $1.5 billion in bitcoins and will accept the coin as payment for services.
This development has convinced financial analysts that unlike in 2017, when retail speculation drove the price of BTC. The current wave is driven by institutional buying, which is likely to stabilize the market in the long run.