Bitcoin falls and around $170bn is wiped off the crypto market

The UK's Financial Conduct authority has warned Britons to be prepared to “lose all their money” if they have invested in crypto assets such as Bitcoin

Bitcoin and other digital coins have fallen in value, wiping off around $170bn (£126bn, €139bn) from the cryptocurrency market.

The market capitalisation or value of the cryptocurrency market was $959.53bn at 12:10 pm Singapore time, January 11, down from $1.1trn a day earlier, according to Coinmarketcap.

Bitcoin, the largest cryptocurrency, fell more than 11 per cent from a day earlier to $35,828.06, at around 12:15 pm Singapore time. Ethereum, the second-largest, was down around 15 per cent to $1,126.72.

However, Bitcoin has still grown more 340 per cent over the past 12 months and last week hit an all-time high just short of $42,000.

At the same time the UK’s watchdog, the Financial Conduct authority (FCA), has warned Britons to be prepared to “lose all their money” if they have invested in crypto assets such as Bitcoin. 

The FCA urged consumers to understand what they were investing in and the financial risks involved, given that they were unlikely to be protected by UK schemes that help investors reclaim cash when companies go bust.

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The FCA said some crypto investment firms may be overstating potential payouts, or understating the risks.

“The FCA is aware that some firms are offering investments in crypto assets, or lending or investments linked to crypto assets, that promise high returns,” the regulator said.

“Investing in crypto assets, or investments and lending linked to them, generally involves taking very high risks with investors’ money. If consumers invest in these types of product, they should be prepared to lose all their money.”

The latest warning comes amid renewed investor interest in the crypto space and a recent surge in the price of Bitcoin.

FURTHER READING: MassMutual buys $100m in Bitcoin

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