Amundi warns bitcoin in for ‘brutal’ price correction as regulation hits sector

Amundi warns bitcoin in for ‘brutal’ price correction as regulation hits sector

cryptocurrency-regulation

Bitcoin and other cryptocurrencies could face a “brutal” price correction when regulators eventually weigh in on the sector, Europe’s largest asset manager Amundi has said.

The firm’s deputy chief investment officer Vincent Mortier said cryptocurrencies cannot be viewed as money or an asset worth investing in, in comments published as part of an upcoming report on the sector, seen by Financial News.

It is the first time Amundi – with €1.7tn of assets under management – has taken a public stance on cryptocurrencies.

“To date, [crypto] is neither a proven store of value, nor a recognised unit of account and even less a universal means of payment,” Mortier said. “Cryptocurrencies have no real economic underlying asset. As a result, there is no valuation model.”

Speaking to FN in a virtual interview, Mortier said the price of bitcoin above $50,000 was difficult to justify.

The cryptocurrency reached an all-time high of above $61,000 earlier this month, and was trading around $56,800 as of 12:20 GMT on 24 March.

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