BoE’s Cunliffe warns of more tough times for crypto

LONDON (Reuters) – Investors in crypto currencies should expect more difficult times ahead as tightening financial conditions around the world stoke appetite for safer assets, Bank of England Deputy Governor Jon Cunliffe said on Tuesday.

Asked at a Wall Street Journal conference if rising interest rates would ramp up pressure on crypto currencies, Cunliffe said: “Yes, I think as this process continues, as (quantitative tightening) starts in the U.S. … I think we’ll see a move out of risky assets.”

Cunliffe added that the conflict in Ukraine also had the potential to cause a renewed flight to safer assets.

“When there’s a move out of risky assets, you would expect the most speculative assets to be the ones most affected,” Cunliffe said.

Bitcoin, the world’s largest cryptocurrency, fell as low as $25,401 on Thursday, its lowest since Dec. 2020. It hit a record high of $69,000 in November.

(Reporting by Andy Bruce; Editing by Alistair Smout)