The bitcoin price has dropped under $29,000 per bitcoin, its lowest since late May, as stocks suffered their worst week since January following a red-hot inflation report that exceeded economists’ forecasts. Ethereum has crashed more than 10% after developers again delayed a long-awaited upgrade, with top ten coins BNB
Now, as traders brace for a Federal Reserve earthquake, U.S. Treasury secretary Janet Yellen has warned against including cryptocurrencies in retirement plans, calling them “very risky.”
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“It’s not something that I would recommend to most people who are saving for their retirement,” Yellen said this week at an event organized by the New York Times
Earlier this year, financial giant Fidelity announced it would add a crypto option to workplace retirement plans it manages, allowing for the inclusion of bitcoin in its operated 401(k) accounts. The Labor Department said it had “grave concerns” over the plan.
Yellen went on to suggest Congress could regulate whether bitcoin, ethereum or other cryptocurrencies could be included in retirement accounts such as 401(k) plans. “I’m not saying I recommend it, but that to my mind would be a reasonable thing,” she said.
Wall Street’s interest in bitcoin and crypto has exploded over the last couple of years as the crypto market ballooned to almost $3 trillion. However, the bitcoin price has now crashed more than 50% from its all-time high of almost $70,000 per bitcoin, dragging down the entire crypto market.
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Ethereum and other top ten cryptocurrencies BNB, solana, cardano and XRP have crashed even harder than bitcoin with the solana price losing almost 90% of its value.
Yellen has previously warned over the future of bitcoin and cryptocurrencies, cautioning traders and investors that extreme volatility could result in substantial losses.
“It is a highly speculative asset and you know I think people should be aware it can be extremely volatile and I do worry about potential losses that investors can suffer,” Yellen told CNBC in February.