According to Bloomberg analysts, CFOs of some Wall Street companies may suspend Bitcoin investment plans following the recent BTC correction.
Bitcoin has already attracted a number of institutional investors, but it is still far from large-scale investments. The volatility of BTC and deep corrections in the price of an asset can become an obstacle for investments from financial institutions – the high volatility of bitcoin will not allow investing reserves in cryptocurrency.
“This can be a disincentive for investors if a company buys financial assets for speculative purposes outside the core business,” said Michael O’Rourke, chief market strategist at JonesTrading.
Columbia Business School professor Robert Willens echoed this view. Investments in bitcoin create additional risks – if the main line of business requires financial injections, and funds are invested in bitcoin and a correction occurs in the market, this can threaten the very existence of the company.
Interestingly, during the correction, institutional investors significantly increased their bitcoin purchases and retail traders took more short positions.
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