Bitcoin has been spiraling downwards since Elon Musk announced Tesla would no longer accept the cryptocurrency as a payment and the billionaire has since then repeatedly tweeted negatively on the world's leading crypto making it plunge 40% in less than two months.
Apart from Bitcoin, Ethereum and all other cryptocurrencies have been seeing new lows and the indices since May 2021 is only trading in red with only a few glimpses of green. While Bitcoin has been slipping close to 3-5% per day, Ethereum is falling 5-7% and dragging other cryptos along its dreadful path.
Investor Kevin O'Leary revealed to Express.uk that Bitcoin's fall is just the beginning and warned of a major disaster that would wipe out a large portion of investor's holdings in the coming months in such drastic scale and so brutal that investors would begin to weep looking at their loss of capital.
O'Leary predicted that once Bitcoin faces the extreme dark red candle stick blood bath, every other cryptocurrency would follow its path making nobody richer and bring the crypto market to its knees.
''Grown men are going to weep when that happens. You will never see a loss of capital like that ever in your life. It will be brutal and I'm just saying you have to get ready for it,'' he said.
Also, Britain's Financial Conduct Authority (FCA) has warned investors of the risks that come with Bitcoin and other cryptocurrencies following its slump since May 2021, and stated that cryptos advertise high returns in minimal time and lure gullible people to invest only to realize that's not the case.
The FCA stated that since cryptocurrencies are not regulated around the world, money-laundering, price volatility on purpose and other illegal activities don't meet the eye of the day-to-day investors and warned that people should be prepared to lose their money as nothing is seen on the surface.
Internal trading is also rampant in the crypto market and several top investors have gotten away with it and their identity is still not known. All of these makes trading in crypto dangerous, said the FCA.
A part of the FCA report read, ''If consumers invest, they should be prepared to lose all their money. Some investments advertising high returns from crypto assets may not be subject to regulation beyond anti-money laundering. Significant price volatility, combined with the difficulties valuing (Bitcoin) reliably, place consumers at a high risk of losses.''