It's a bloodbath in cryptocurrency markets this morning…
Having bounced overnight to over $10,600, Bitcoin prices are tumbling once again as we approach the US equity market open…
Ethereum is down over 20%…
While there is no immediate catalyst, we note that ECB Vice President Vitor Constancio – ever eager to talk citizens away from decentralized 'anything' – warned about the risks of investing in bitcoin at current valuations.
Speaking to CNBC, Vitor Constancio said developments in bitcoin's price make it "a speculative asset by definition," continuing: "Investors are taking that risk of buying at such high prices."
Even so, Constancio told CNBC that the ECB is not in a position to regulate the cryptocurrency, saying, "We don't have responsibility or even instruments that point to particular prices of particular assets, that is certainly not the role of central banks."
His comments echo those of ECB president Mario Draghi, who in September indicated that the central bank does not have the authority to regulate cryptocurrencies.
"It would actually not be in our powers to prohibit and regulate" bitcoin and other digital currencies, he said at the time.
via http://ift.tt/2i522hX Tyler Durden