The total market capitalisation in the crypto currency markets has again fallen below the 1.0 trillion-dollar level on Thursday. With increasing corporate purchases, the total market capitalisation, which exceeded the 1.0 trillion dollar limit for the first time in history on January 7, fell to 992 billion dollars in the early hours of the new day.
Columbia Business School adjunct professor Robert Willens believes CFOs might be unwilling to invest cash reserves in Bitcoin following last week’s price plunge as it represents a significant risk on their part, according to Coinjournal. “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“, he added.
BTC has always split narratives amongst institutional investors due to its price action. In the past, institutional investors didn’t look towards Bitcoin due to its high volatility and low adoption rate. However, as more people and companies look towards Bitcoin as a store of value, institutional investors are starting to give Bitcoin a thought while others have already invested millions of dollars into the cryptocurrency market.
Despite 2020’s investment, Bitcoin still accounts for a tiny percentage of institutional funds, with its market cap yet to touch $1 trillion. Goldman Sachs believes Bitcoin needs more institutional investments to gain stability.