Bitcoin and other cryptocurrencies hit one-week low
Cryptocurrencies plunged on Monday, with Bitcoin dropping more than 12% to a one-week low. This is the worst daily plunge sighted in the dominant crypto asset since March 2020.
The price of Bitcoin is presently under immense pressure at the first working day of the week, amid record sell-offs sighted at the ever-changing financial asset.
The cryptocurrency fell as far as $33,447, its lowest since January 6. Ethereum which often moves in tandem with Bitcoin, fell as much as 20% to a one-week low of $1,007.51.
With small investors at risk of big losses amid the volatility that saw bitcoin rocket by one third in value last week, Britain's financial watchdog on Monday urged caution.
"Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors' money,” the UK’s Financial Conduct Authority warned.
"If consumers invest in these types of product, they should be prepared to lose all their money," the FCA added.
A large number of crypto investors are presently cashing out at record levels amid a significant drop in the value of Bitcoin. The world’s most popular crypto asset dropped as much as $8,000 at the start of Monday’s trading session.
The majority of Islamic scholars believe trading in Bitcoin and other cryptocurrencies are Haram, or forbidden, because it has no value in and of itself and lacks any economic strength.
The scholars argue that cryptocurrencies have not been adopted by any legitimate government entity and its value is only based on the fluctuation of the market.
They say most aspects and features of bitcoin or other cryptocurrencies are haram, and they are used for gambling and other such tasks that are considered haram.