Bloomberg: Bitcoin volatility spooked major companies

Many Wall Street financial managers have reconsidered investing in Bitcoin after its price fell more than 25% last week, according to Bloomberg.

“Such a gap in corporate reserve funds would spell the end for the future of any company in the S&P 500, the publication’s experts emphasised.”

Robert Willens, a professor at Columbia Business School, said that Bitcoin reserves carry risks for financial managers that they are unlikely to undertake after last week’s decline in the price of the leading cryptocurrency.

“If corporations started purchasing financial assets for speculation unrelated to their core business, it would be a troubling signal for investors,” added JonesTrading’s chief market strategist Michael O’Rourke.

Bitcoin price correction of 9.7%. Data: Bloomberg.

In 2020, institutional investors acquired more than 1 million BTC — 5.57% of the cryptocurrency’s market supply. Among them were Grayscale Investments (about 600,000 BTC), MicroStrategy (70,470 BTC), Ruffer Investments (45,000 BTC) and Square (4,709 BTC).

Earlier, Guggenheim Partners’ investment director Scott Minerd predicted a rise in Bitcoin to $400,000, but expressed concerns about the market’s near-term prospects.

Earlier Pantera Capital’s Dan Morehead confirmed his forecast for the price of the leading cryptocurrency at $115,000.

Subscribe to ForkLog news on Telegram: ForkLog Feed — the full news feed, ForkLog — the most important news and polls.