Cryptocurrencies heading for another crash, warns ex-BOT director
Former Bank of Thailand director Anusorn Thammajai on Sunday warned Thailand’s growing army of cryptocurrency investors that the digital assets could crash again in March.
Anusorn predicted another cryptocurrency crisis would hit next month as central banks move to taper quantitative easing and raise interest rates.
Last month, the price of cryptocurrencies plunged more than 40 per cent as investors fled to less volatile assets.
An eye-watering $1.35 trillion (44.5 trillion baht) has been wiped off the value of digital coins since November last year, according to CoinMarketCap.
"A cryptocurrency bubble will emerge at the end of March when liquidity in the financial market drops due to moves by central banks to taper quantitative easing and raise interest rates," Anusorn said.
He warned investors who hold risky assets to pay extra careful attention in the second quarter this year.
He added that while cryptocurrency is helping to create a financial ecosystem in the digital economy, it also poses risks to financial and economic systems.