Cryptocurrencies – including Bitcoin – have just suffered one of their worst days ever, crashing in value by more than 12% since last week.
And it all seems to be because of bad news from Google and the head of the International Monetary Fund.
The internet company has announced it will be banning all cryptocurrency advertising from its platforms because of a lack of consumer protections for the high-risk trading activity. The ban will come into force in June and comes after Facebook made a similar move earlier this year.
The value of Bitcoin, Ethereum and Ripple all dipped after the news came out.
But speaking to the BBC, crypto expert and author of Attack of the 50ft Blockchain David Gerard said:
“This is all a good move. It’s about tackling the kinds of risky investments that verge on gambling.
“If you’re a proper trader or an accredited investor then fine – it means you’re rich and your money is your own problem. But these things shouldn’t be targeted at ordinary people.”
And things were made even worse after the International Monetary Fund’s managing director gave her own warnings about crypto-currencies on Tuesday.
“Money laundering and terrorist financing is only one dimension of the threat. The rapid growth of crypto-assets, the extreme volatility in their traded prices, and their ill-defined connections to the traditional financial world could easily create new vulnerabilities.
“We must welcome their potential but also recognise their risks.”
Will cryptos continue to slide or could they make an unexpected recovery? Only time will tell.
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