A 'healthy correction' or is the #bitcoin bubble bursting?

BITCOIN prices have crashed on Monday after nearly £126billion ($170billion) was wiped from the cryptocurrency market's value in just 24 hours.

PUBLISHED: 11:01, Mon, Jan 11, 2021 | UPDATED: 11:03, Mon, Jan 11, 2021

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Bitcoin: Cryptocurrency jumps to record high reveals expert

Bitcoin prices as of 10am GMT on Monday are hovering around the £26,748 mark, according to the latest Coindesk data. The last 24 hours have seen bitcoin (BTC) prices fall by 11.04 percent - an unexpected pullback after recent rallies saw BTC skyrocket past £30,352 ($41,269) for the first time in 12 years. The plunge comes amid warnings from the Financial Conduct Authority (FCA) about the risks of investing in cryptocurrency.

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The UK-based regulatory body said on Monday investing in crypto assets "involves taking very high risks with investors’ money".

The FCA added: "If consumers invest in these types of product, they should be prepared to lose all their money."

Bitcoin has been rallying since October 2020 with prices soaring by a staggering 300 percent.

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Analysts, however, warned the crypto market was due a correction.

READ MORE: Bitcoin price rise: Will Bitcoin keep rising? Why is BTC soaring?

Bitcoin price crash: Market cap of BTCBitcoin price crash: BTC prices plunged by 11 percent from the weekend (Image: GETTY)

Bitcoin price crash: Coindesk BTC price chartBitcoin price crash: BTC is down after breaking through $41,000 for the first time (Image: COINDESK)

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And on Monday the cryptocurrency market's capitalisation fell from about £880billion ($1.1trillion) to about £725.16billion ($978.22billion), according to CoinMarketCap data at 10.19am GMT

The three leading cryptocurrencies, bitcoin, ethereum and tether, are all down on the last 24 hours.

Naem Aslam, the chief market analyst at Avatrade, said the weekend's plunge is a "healthy correction".

He predicts BTC will find some stability between the £20.76K and £22.2K ($28K and $30K) mark.

Bitcoin price crash: Crypto market price chartsBitcoin price crash: The leading cryptocurrencies are in the red (Image: COINMARKETCAP)

Bitcoin price crash: BTC exchangeBitcoin price crash: The FCA watchdog has warned against investing in Bitcoin (Image: GETTY)

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