The Financial Conduct Authority in the United Kingdom has warned investors looking to capitalize on Bitcoin surges, stating, "Be prepared to lose everything."
The agency stated in a press release that investing in cryptocurrencies, or associated investments and lending, generally involves very high risks for investors' funds. If individuals invest in these types of products, they should be ready to lose all their money. The price of Bitcoin has more than quadrupled in the past year, evoking memories of the 2017 craze that brought cryptocurrencies into the mainstream before the prices plummeted just as quickly. Bitcoin's price dropped by up to 21% on Sunday and Monday to below $32,400. This decline marks the largest drop in two days since global markets first faced the COVID-19 pandemic last year, following a record high of around $42,000.
