With the recent 30% dump of the leading currency from its $41, 900 high on the 1st of January, 2020 to a dangling $36,549.40 currently, Bloomberg reveals that Chief Financial Officers at Wall Street are no longer motivated to stash hard earned funds from their company into volatile assets like BTC.
Companies like MicroStrategy, a “business intelligence, mobile software, and cloud-based services” company and Square Inc., a San-Fransisco based financial services company stashed several millions of dollars belonging to their company in bitcoin (BTC, +5.07%) last year.
Wall Street CFOs Are Becoming Sceptical of BTC
Although BTC is scaling past its dip to $35,700 and is currently at $36,549.40 at press time, it is still very far away from its peak of $41,900. This recent plunge has made the leading currency to be somewhat less attractive to many Wall Street CFOs and institutional investors who are investing a part of their company’s reserve.
Michael O’Rourke, Chief Marketing Strategist at Jones Trading notes:
“It would be a red flag for investors if a corporation bought financial assets for speculation purposes unrelated to their core business”
The coin is now showing its volatile traits with its recent price fluctuations. It will not be heard that a company stashed its investors’ monies into speculative assets based on market sentiments and what not.
BTC Is Volatile
Robert Willens, an Assistant Professor at Columbia Business School revealed that with how risky volatile BTC has proven to be, many CFOs are unwilling to comfortably continue to stash their company’s reserves into the coin after last week’s plunge.
“Is it a smart strategy? It could be. But, of course, if it’s not, it would become something that could threaten the very existence of a corporation.”
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