Investors flocking into bitcoin are taking a risk by buying at such high prices, the vice president of the European Central Bank (ECB) Vitor Constancio told CNBC Wednesday.
"It's a very particular asset, it's a speculative asset by definition looking to the developments in its price. Investors are taking that risk of buying at such high prices," Constancio noted.
In just over the last year bitcoinhas gone from under $1,000 to passing the $10,000 marker. Earlier in the week, the global cryptocurrency market broke through the $300 billion milestone, showing that the appetite for digital currencies is on the rise.
Constancio told CNBC that the price of bitcoin is likely to fluctuate more, but this is not set to hurt other markets in any way.
"Certainly I don't think it would spread to other markets," he said.
Central banks have been reluctant in giving any credit to digital currencies. ECB President Mario Draghi said at a press conference in October that cryptocurrencies are not "mature" enough to be considered by the ECB for regulation.