Luis de Guindos, vice president of the European Primal Banking company, has dismissed the value proposition of cryptocurrencies as investment avails.

Speaking to Bloomberg Television set, the ECB vice president remarked that crypto should non be seen as a real investment. "When y'all have difficulties to find out what are the existent fundamentals of an investment, then what you lot're doing is not a real investment," de Guindos argued, adding:

"This is an asset with very weak fundamentals, and that is going to exist subject to a lot of volatility."

According to de Guindos, the current marketplace drawdown is non dissimilar from the explosive surge recorded between quarter four of 2020 and quarter one of 2021. Indeed, the ECB executive opined that the present decline is symptomatic of the volatility of the cryptocurrency market.

Earlier in May, Bank of England Governor Andrew Bailey warned that crypto investors were liable to lose their money. While de Guindos's argument on Wednesday hinged on weak fundamentals and volatility, Bailey contended that crypto lacked intrinsic value during a briefing held earlier in the calendar month.

Indeed, crypto prices take been on the decline in the last week, with Bitcoin (BTC) shedding over $xv,000 from its toll. In all, the market has lost over $750 billion, with almost half of the slump occurring in the last 24-60 minutes trading flow.

The electric current decline has seen the percent of unique Bitcoin entities in profit slide to its lowest level since the Black Th crash of 2020.

Bitcoin has rebounded on the three previous occasions when this metric fell amid a significant bullish advance, and crypto proponents volition nigh likely be hopeful of a repeat in this regard.

Meanwhile, tape Bitcoin inflows are striking crypto exchanges, with data from crypto on-chain monitoring service Glassnode indicating that newer entrants are responsible for the bulk of the selling pressure.