• Two officials from the European Central Bank stated in a blog that the approval of spot Bitcoin ETFs, and the subsequent price rise, are not proof the cryptocurrency is an excellent investment.
  • They wrote that while Bitcoin’s value may increase in the short-term, there is no “fair price” to base serious predictions on.

Why is this dead cat bouncing up so high?

BTC Price Index and Live Chart – CoinDesk”>(BTC) spot exchange-traded funds in the U.S.

In a post published on Thursday, Ulrich Bindseil and Jurgen Schaaf, ECB’s Director General for Market Infrastructure and Payments and Advisor Jurgen Schaaf said that the approval by the U.S. Securities and Exchange Commission of multiple funds and billions of dollars have poured into bitcoin since does not change the fact it is a lousy way to invest and a clunky method of payment.

Read more: ECB Officials Full Statement on Bitcoin Failed Promise and ETFS

The two officials reaffirmed the central bank’s position that Bitcoin was bad. They called the ETF approval of the cryptocurrency the “naked emperor’s brand new clothes.”

The European Union was the first major jurisdiction in the world to adopt a comprehensive regulatory regime for crypto assets, and service providers. The ECB is working hard to promote a digital currency, a central bank-issued currency which could be a safe alternative to rogue crypto.

The central bankers did not only list bitcoin’s usual flaws such as its high volatility, high cost, slow transactions and energy-intensive mining, but also three other factors that are driving the current rally.

The price will be driven by “the ongoing manipulation of the “price” in an unregulated, unsupervised market, without any fair value and the increasing demand for “currency of Crime,” as well as the shortcomings of the authorities’ judgements and measures.” Bindseil & Schaaf wrote that “there is no reasonable fair value to base serious forecasts on,”

The two experts warned that authorities must remain vigilant in order to protect the society when the house collapses.

They said, “This work hasn’t been completed yet.”

Parikshit Miishra is the editor.