Bitcoin is a “speculative, volatile asset,” according to the chairman of the Securities and Exchange Commission (SEC).
Regulators in the U.S. recently agreed to allow Bitcoin to be part of mainstream investing funds, but Gary Gensler, the SEC chairman, has already issued a warning to investors. He insisted that they shouldn’t mistake the approval for an endorsement of the cryptocurrency.
“Bitcoin is primarily a speculative, volatile asset that’s also used for illicit activity including ransomware, money laundering, sanction evasion and terrorist financing,” Gensler stated. “Investors should remain cautious about the myriad risks associated with Bitcoin and products whose value is tied to crypto.”
Meanwhile, Elon Musk previously sent the value of Bitcoin into a spiral with a one-word message on X.
The billionaire businessman invested in the cryptocurrency through his Tesla firm, but he subsequently undermined the value of the stock by appearing to suggest that he was about to sell his shareholding.
The fall in value occurred after Musk responded to a post that read, “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings. With the amount of hate @elonmusk is getting, I wouldn’t blame him …”
“Indeed,” Musk, the owner of X, simply said.
