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The recent instability in bitcoin prices is caused by Tesla Elon Musk has raised new doubts among the financial regulators of the financial sector as a whole.
UBS Wealth Management, Pimco, T Rowe Price and Glenmede Investment Management were some of the companies that have expressed doubts in recent days about the potential for cryptocurrency.
The problem came when Tesla said it was no longer accepting payments for electronic cars due to environmental issues, and Musk jokingly cited dogecoin, a cryptocurrency rivalry, as “search”Appearing on Saturday Night Live The television set.
“Our attitude with customers is a 10-step rule: stay away from this,” said Jason Pride, chief financial officer at Glenmede. “I don’t think the Fed and other regulators are interested in the modern cryptocurrency market.”
Rob Sharps, President and chief financial officer at T Rowe Price, told the Financial Times: “Crypto affects corporate markets, and we are experts in big markets. Finally, what we offer customers is not worth investing, and we recognize serious doubts in the air.”
Demonstrating serious uncertainty, bitcoin traded above $ 44,000 on Monday, about $ 20,000 from the high price it reached last month. A recent scandal sparked by Musk seems to mean on Twitter that Tesla owns or will sell the price it has earned in bitcoin. He later explained that the machine maker “never sold anything”.
In fact, bitcoin has become entrenched with investors in recent years and futures trading will become more liquid. U.S. regulators are also considering whether to approve crypto currency exchange transactions.
But asset managers say they are concerned with signs that cryptocurrensets are failing to meet expectations they could become volatile over time or provide women with barriers to cope with the economic downturn or rising prices.
“The volatility of crypto is very high and we often find that, when the currency is traded, the same as bitcoin and that means it does not change the good news,” Pride said.
Nicholas Johnson, event manager at Pimco, argued with bitcoin freedom fighters who praised the high price point after the U.S. currency rallyed and gold prices falling.
“The idea that crypto is an inflationary economy is interesting,” he said. “Inflation has not improved much in recent years as cryptocurrencies have become more efficient. People are looking for a reason to excuse themselves why crypto went up. “
The crisis over Cryptocurrency escalated this week when a U.S. chief executive warned investors that buying futures in bitcoin would be “highly profitable” – and warned that cryptocurrencies could be closely linked to cryptocurrency.
Investment Management section in Securities and Exchange Commission he said: “Investments that could be traded in the future should be followed by investments that are in line with appropriate strategies that can support this type of business and expose the physical risks.”
“We anticipate that the crypto industry’s most advanced cryptocurrencies will continue to grow,” said UBS Wealth Management, adding that the price volatility that followed Tesla’s announcement “sheds light on the risks companies face if they adopt a crypto residual display”.
Tom Jessop, head of digital assets at Fidelity, which has been receiving cryptocurrencies, however warned that such businesses were in the early stages of development.
“We talk about bitcoin as a storehouse and he is young in terms of size due to the high volatility,” he said. “Some advertisers are willing to admit this inconsistency they see as an opportunity to go with it in the long run.”
Loyalty provides a loan service that enables more than 100 financial institutions such as hedge funds and family offices to purchase cryptocurrensets and provide them with administrative services. Loyalty has a small purse that sells electronic items to customers and has been used by the SEC to launch an bitcoin ETF.
While asset managers may avoid crypto, the flexibility of its comparisons is hampered in the market due to the strong growth of retailers leading to instability in the market, known as “replacement power”.
Viraj Patel, a researcher at Vanda Research said: “Seeing what traders are selling is crucial to how businesses are doing now.” “He asks, if thousands of dollars are buying bitcoin, does that mean they have stopped buying top US stocks?”
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