The City watchdog warned investors in digital currencies that they should be prepared to lose everything as the price of bitcoin slumped by as much as 25 per cent yesterday.
The Financial Conduct Authority said that consumers were at a “high risk of losses” if they invested in digital currencies, other “cryptoassets” or products linked to them.
Bitcoin, the world’s most popular digital or cryptocurrency, nearly quadrupled in value last year and this month it has risen by as much as 44.9 per cent to last week’s record high of $41,998.75. The price rise appears to have attracted droves of retail investors to the market.
However, the watchdog’s warning, combined with profit-taking after the recent record high, pushed bitcoin lower and in
