Singapore’s financial authorities are sounding a new alarm regarding cryptocurrency investments. The government’s official body said that cryptocurrencies carry “serious risks in investment”.
The Managing Director of the Monetary Authority of Singapore (MAS), Ravi Menon, said that cryptocurrencies such as Bitcoin and Ethereum are subject to sharp speculative changes. This risk has come to the attention of the government.
“Crypto token prices are not anchored to any economic fundamentals, and are subject to sharp speculative swings,” Menon said.
“Investors in this token are at risk of suffering significant losses.”
Meanwhile, Bitcoin and Ethereum hit all-time highs in the United States (US) on Monday (11/8/2021). Bitcoin was up 2.7% around 4:09 am US East Coast time.
Tuesday (9/11/2021), at US$68,086.45, according to Coindesk. Ethereum is up 1.56% and is trading at US$ 4,813.94 at the same time.
Cumulatively Bitcoin is up 130% so far this year and ether is up 550% in 2021. Both digital currencies have seen wild moves throughout the year.
Hundreds of billions of dollars were wiped from the cryptocurrency market in May this year after Tesla CEO, Elon Musk, tweeted that the electric vehicle maker would stop allowing Bitcoin to buy its cars.