Bloomberg wrote that, after the drop in Bitcoin price since last week's $ 42,000 level, Wall Street finance executives are more cautious about investing corporate funds in Bitcoin.
As is known, 2020 has been a year in which some large companies accepted and bought Bitcoin as a reserve asset. MicroStrategy made huge purchases and the final figure on the company's vault is over 70,000 BTC. Another remarkable company in this regard was the Square company. Square also made a purchase of approximately 5,000 BTC. Insurance companies Ruffers and giants like MassMutual also continued this trend. Apart from these, some small-scale companies have also included Bitcoin in their balance sheets.
On the other hand, according to Bloomberg, who spoke with company executives, this strategy may have lost some of its appeal. Serious fluctuations in the price prevent managers from investing in Bitcoin, as the company's cash reserves are almost a black day money to run business against unexpected developments.
JonesTrading's chief market strategist, Michael O'Rouke, who made evaluations on the subject, said, "It is a danger sign for investors that a company purchases financial assets for speculation without being related to its main activities. said.
Robert Willens, visiting professor at Columbia Business School, said investing in Bitcoin after last week's price action poses a risk that companies' finance officers may not be willing to bear. "It might be a clever strategy, but if not, it could make the company's own existence threatening," says Willens. used the expressions.
