An ECB adviser criticized Bitcoin, citing its volatility and lack of significant economic utility compared to traditional reserves.
ECB Adviser's Take on Bitcoin
Jürgen Schaaf, an adviser to the European Central Bank, reiterated the institution’s negative stance on Bitcoin, calling national Bitcoin reserves a risky idea due to its unproven economic necessity. Schaaf’s views align with ECB President Christine Lagarde's dismissal of Bitcoin’s inclusion in central bank reserves. He emphasized the role of strategic reserves in stabilizing import prices rather than serving speculative purposes. The priority, he suggested, should be on reducing public debt in Europe and the US.
Strategy's Stock Drop Amid Bitcoin Volatility
Recent Bitcoin market fluctuations have highlighted its extreme volatility. Strategy’s stock has declined nearly 16% since the start of the year due to the cryptocurrency's market correction, raising concerns about the sustainability of its aggressive Bitcoin accumulation strategy. The company had to reconsider its capital-raising model, reliant on its growing Bitcoin reserves. Despite challenges, Benchmark analysts raised the company's price target, confident in its capability to continue this strategy.
Proposal for GameStop to Invest in Bitcoin
GameStop Corp received a proposal from Strive Asset Management to invest its cash reserves into Bitcoin. CEO Ryan Cohen confirmed receiving a letter suggesting the use of market offerings to fund additional Bitcoin purchases. Strive Asset Management argues that this move would help GameStop hedge against inflation and secure long-term shareholder value.
Despite criticism and volatility, Bitcoin remains a topic of discussion in financial circles. Some companies see it as a means of long-term value stabilization, while regulators and analysts remain cautious regarding its economic role.
