Bitcoin's crazy price rise raises concerns about unregulated cryptocurrency market bubble

Golden Finance News - According to a survey, Bitcoin's sky-high valuation has helped the total market value of cryptocurrencies exceed US$50 billion, which has caused cryptocurrency investors and users to worry about an asset bubble in the unregulated market.

(Bitcoin prices on the Bitfinex exchange last Friday exceeded $1,900. Image source: Golden Finance)

As things stand, more and more alternative digital currencies, such as altcoins, are skyrocketing in the speculative frenzy.

Bitcoin has risen 55% this month, and its price once surpassed that of gold. The price of Bitcoin shown on the Bitfinex exchange last Friday was over $1,900.

In addition to Bitcoin, there are more than 830 currencies of this nature, from Litecoin, which aims to challenge Bitcoin, to MiketheMug.

(Japan strengthened its regulation of the cryptocurrency Bitcoin last month. Image source: Golden Finance)

The recent increase in initial coin offerings (ICOs) is driving the cryptocurrency market, which has attracted the attention of lawyers and related financial professionals.

Ajit Tripathi, fintech director at PwC, said: “An ICO issues crypto tokens, not stocks and bonds, and raises funds from the general public. Fundraising activities need to be regulated to protect investors, but the concern is whether these investors have a certain level of investment experience.”

Japan last month tightened regulation of the cryptocurrency bitcoin, a move that forced exchanges to register with the state and comply with know-your-customer and anti-money laundering rules, adding to the costs of trading operations.

One trader on the exchange was cautious about the potential of the cryptocurrency market.

The trader said, “Prices in the cryptocurrency space have exceeded investor expectations, but it remains to be seen whether growth can continue.”