Tech stocks continue to decline
A few days ago, cryptocurrencies and technology stocks continued to decline from time to time, causing investors to lose billions of their investments.
Tech giants suffer losses
The digital asset industry has recovered from previous losses, recording new gains as most assets are now in the green. This is not the case with tech stocks, as they regularly decline, causing some chaos in the tech industry.
The technology industry is a growing sector where new technology businesses bring ideas and attract investors. But last week, the tech industry experienced one of the most significant disruptions in history, and the incident worries investors about the future of the tech industries. Even tech giant Tesla is also feeling the heat of new falls, which could significantly affect stock prices.
Bitcoin showed rapid signs of recovery when it finally hit the $ 50,000 mark after the previous struggle it faced to reach that level. The recovery of the royal coin paves the way for the recovery of other assets, as Ethereum and Litecoin have made some gains over the past few days. Experts believe that the growth of the dollar caused the fall of Bitcoin.
However, the asset showed some dominance, breaking the $ 50,000 resistance. On the other hand, tech stocks are having a very bad month, as many of them are in the red. Tesla’s share price has recently declined by 5%, which may mean that the situation in the industry may deteriorate. Isn’t that why the company is diversifying its portfolio with Bitcoin?
And even though the Cue ball is currently trading at a price of $ 47,000, it was able to demonstrate a huge breakthrough, and this is great news for long-term investors and experts who predict a more significant increase in valuable assets. The crypto space knows that it has been exactly a year since the MTC began its bullish run, bringing the asset up from $ 3,000 last year in March, to $ 58,000.
The biggest supporters of outstanding price growth are institutional buyers, who bought up the asset quite heavily in 2020, as well as retail investors, who have always supported the growth of the asset since its introduction. Two players will make more effort to increase the deficit by making more purchases.
And that’s why the tech giants are looking for a way out.
Salvation lies in BTC
Most likely, this is why 5% of financial managers of companies plan to keep BTC in their investment portfolio.
It is worth noting that although some institutional investors are mostly interested in investing in cryptocurrency, the problem arises when financial authorities are still not ready to make such a decision.
It’s also easy to see why: a survey conducted by Gartner (one of the world’s leading consulting and research companies) found that a whopping 84% of respondents expressed little or no desire to hold the digital currency as a corporate asset, largely due to its highly volatile nature.
Moreover, those who expressed interest in investing in it also noted that they are not in a hurry to take such a step yet. According to the survey, only 5 percent of the total number of participants showed interest in owning a leading digital currency. Many of them are technology companies.
As mentioned in the above-mentioned survey, 50 of the 77 executives surveyed were CFO’s. They, and especially technology-oriented executives, are certainly interested in the prospects of switching to a digital currency, and in the future consider it as a potential means of saving. However, they also said that a lot of additional research is needed to defeat the financial bigwigs.