Bank of England deputy governor Jon Cunliffe has warned crypto investors to brace themselves for a tough time as financial conditions tighten.

Asked if rising interest rates would increase pressure on cryptocurrencies, Cunliffe responded, “Yes, I think as this process continues, as (quantitative tightening starts in the U.S., I think we’ll see a move out risky assets. When there’s move out of risky assets, you would expect the most speculative assets to be hit the ones most affected.”

Cryptocurrencies have suffered a massive drop in value in recent weeks, causing cryptocurrencies to lose $200 billion in market value.

The collapse of stablecoin TerraUSD on Monday also hurt the cryptocurrency market in general: The world’s largest cryptocurrency Bitcoin fell to 25,401 dollars on Thursday, the lowest level since December 2020. It hit a record high of 69,000 dollars in November.

Experts say investors are retreating from risky investments because of expected tighter regulation, and while cryptocurrencies may have recovered, experts have warned that the worst is yet to come.