The price of popular cryptocurrencies like bitcoin and ethereum plunged Friday after Chinese officials intensified a crackdown, essentially declaring crypto to be illegal.
The government intervention, while significant, doesn’t necessarily mean investors should run for the hills, though, according to financial advisors. But it’s another reminder that crypto holdings are subject to wild price swings, they said.
“I wouldn’t call this the end of the world,” said Leon LaBrecque, an accountant and certified financial planner at Akron, Ohio-based Sequoia Financial Group. “It’s just a wake-up call.”
“This ought to be a recognition that it’s a volatile asset and all the ups and downs go together,” he said.