The watchdog has cautioned investors about the pitfalls of investing in crypto in the past. The latest warning comes amid renewed investor interest in the space and a recent surge in the price of bitcoin.
Analysts had been warning that a correction was due and the price fell dramatically over the weekend. Bitcoin has fallen by around 12% over the last 24 hours to trade around the $35,650 mark (BTC-USD).
Bitcoin has risen in price by nearly 300 per cent in 2020, outperforming the combined gains of gold and the Dow Jones stock market by a factor of 10.
Recent gains have propelled the cryptocurrency to new record highs of close to $30,000 (£22,000), having traded below $5,000 as recently as March.
Bitcoin’s performance have led some analysts to speculate that we are in the midst of the third great price rally in its 11-year history, as investors increasingly view it as a form of “digital gold” rather than a speculative investment or cash alternative.
In the 2008 crash there was a big build-up
of publicity stating gold price had been steadily rising and there was more
than one reason for this as similarly showing the same signs as of today.
Earlier in the century gold price went extremely
low and at this point gold so cheap to buy the demand rose not only for use in
jewellery and electronics it started to have many more applications requirements
for the new world order!
As this virus kicks even more into the
further; “what are we going to spend money on”? We are all house bound, Amazon is
suffering, army’s controlling the streets and we can’t go out its limited,
restricted unless shopping for essentials. “What a madder world this has become”!
We are living in uncertain times and some
saying ever recorded in history. That in itself is a good enough reason for gold
prices to rise temporarily it’s called panic buying in the same way it is including
necessities, essentials and food etc.!
Inflation occurs when demand is
consistently greater than supplies and that is sure the case for today so our
advice is to buy little but hold out for this to sink much lower.
Recent government chemical structure will support some of the demand
during this difficult period, however it is highly unlikely demand will be
boosted excessively as money dries up quickly!
Bitcoin results have shown dominance and needs to reclaim 60% movement before June 2020 and although dominance of bitcoin is still down 4% the highs for the overall year to date are at around 60%. There has been a general safety flight in Bitcoin it is pushing on an upwards trend so watch this space and buy your gold now click here
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