Survey Shows That Only A Small Portion Of Financial Executives Will Buy Bitcoin
A poll conducted by a firm, Consultant Gartner, showed that about 95% of financial executives might not be interested in holding Bitcoin in 2021. Meanwhile, yesterday, Bitcoin hit another record level, breaking the previous resistance.
However, despite the continuous bullish momentum by the digital currency, the majority of financial executives have not seen enough reasons to endorse the digital currency as a store of value or corporate asset. They hinge their reason on the volatile nature of cryptocurrencies. Hence, they are still worried and careful to stake their money in the volatile asset.
Financial Executives Not Yet Convinced Despite BTC Rise
Despite the persistent urge by institutional investors to drive the prices of cryptocurrencies high, financial executives are still reluctant to stake their corporate assets in favor of the digital currency. They revealed that holding the asset was not In their plan. This conclusion was extracted from a poll conducted by Gartner, a consulting firm.
After interviewing 77 financial executives, only 5% of the respondents expressed positive interest in holding BTC this year. A considerable percentage, 84%, said that they were not interested in holding BTC as a corporate asset, mainly due to its volatile nature. Even most of those who showed interest in holding it this year added that they were not in a hurry to add it.
A meager 5% of all the respondents who showed interest in holding it affirmed that they would do it this year. Just 9% showed interest in adding it to their corporate asset next year. But 1% hinted that they would add BTC in 2022 or 2023. According to Alexander Bant of Gartner Finance, there may be no many endorsements of cryptocurrencies unless regulatory authorities clear the air on the ambiguities surrounding the crypto market.
The poll involved 77 financial executives, 50 of whom were chief financial officers. This study is coming exactly when major cryptocurrencies have broken their all-time highs, mainly because fintech bigwigs in the traditional financial markets are increasingly getting attracted to Bitcoin as a store of value and medium exchange. Nature.
Analyst Believes the Current BTC Rally May not Last
Meanwhile, after the recent surge in the price of Bitcoin to all-time highs to above $40,000, the digital currency fell heavily in a correction mode to below $30,000 in just a few days. The high volatility added to the fear of investors who have been showing concern about the asset. Early this year, BTC rose heavily to $42K but lost 16% in just two days. The subsequent week, it rose again to $39000. Later, it lost 9% of its price. On January 12, it also fell to $33,000, losing hundreds of billions of dollars in just two days. This high volatility will likely rise as time goes on.
But Gartner’s study says financial bigwigs that were interviewed were still interested in understanding the A to Z of the risk associated with holding Bitcoin in particular and other cryptocurrencies in general. Gartner said that financial executives are trained to be careful before investing in assets that they know little about its
Although, as the number of buyers grows, this is a positive move that the digital currency is becoming widely accepted as a store of value. Term ack, an analyst thinks that the current rise is not a testament that Bitcoin will keep rising in the future. He sees it as too speculative and should not be seen as a traditional investment instrument m, despite its continuous rise. Plus, there is no adequate information about the asset.