The bitcoin price climbed to almost $65,000 per bitcoin this week, up around 800% on this time last year, before falling back—with investors trying to call where the bitcoin market top could be.
Now, a World Economic Forum (WEF) executive has warned the booming bitcoin and cryptocurrency sector could soon be hit by a “dramatic” round of regulation.
“We’re going to see another round of pretty dramatic attempts at regulating this space,” said Sheila Warren, the WEF head of data, blockchain and digital assets and member of its executive committee, speaking during an online Bloomberg seminar on Thursday.
Bitcoin’s massive 2021 rally has helped the broader cryptocurrency market hit an eye-watering $2 trillion in recent months.
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“As there’s more and more activity in these spaces there’s more and more demand signal for regulators to get engaged and involved,” Warren said.
This week, Turkey’s central bank banned using bitcoin and cryptocurrencies for payments, sparking a bitcoin sell-off that knocked the bitcoin price from its latest highs. In March, it was reported India is set to propose a law banning cryptocurrencies and could begin fining anyone trading or holding bitcoin and other digital tokens.
Elsewhere, bitcoin has faced criticism over its sky-high energy use—something that’s set to increase if the bitcoin price continues to climb—and its use by extremists to evade surveillance.
However, despite Warren’s warning, she’s still upbeat about the bitcoin and cryptocurrency market even after its huge price surge.
“Some are seeing this as the peak, I think that is absolutely wrong,” she added.