Investing.com – Bitcoin rose sharply on Monday shrugging off a trio of regulators warning that cryptocurrencies have showed clear signs of a “pricing bubble.”
The European Banking Authority, European Securities and Markets Authority, and the European Insurance and Occupational Pensions Authority warned investors against investing in cryptocurrencies as the industry is not backed by any tangible assets and unregulated under EU law, therefore does not offer any legal protection.
"They are highly risky, generally not backed by any tangible assets and unregulated under EU law, and do not, therefore, offer any legal protection to consumers," the watchdogs said in a statement.
They added that cryptocurrencies are "subject to extreme price volatility and have shown clear signs of a pricing bubble.”
That, however, failed to weighed on sentiment as bitcoin and the underlying cryptocurrency market appear to be well supported as investors opted against the level of panic selling seen over the recent sessions.
The total cryptocurrency market cap at $430 billion, at the time of writing, remained well above the roughly $320 billion seen at the depths of the tumble last week.
Bitcoin rose 7.64% to $8,900, while Ethereum, the second largest cryptocurrency by market cap, rose 5.39% to $875.47
Ripple XRP, meanwhile, rose 6.28% to $1.049.