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Fitch Ratings: Securities Supported by Bitcoin Pose Extremely High Risks
Summary: According to reports, Fitch Ratings has issued a warning that securities supported by Bitcoin face high market value risks due to price volatility, structural complexity, and counterparty risk exposure. These instruments rely on Bitcoin as collateral, and their liquidation trigger mechanisms could amplify losses. Past bankruptcies of cryptocurrency lending institutions and extreme Bitcoin fluctuations (such ...
According to reports, Fitch Ratings has issued a warning that securities supported by Bitcoin face high market value risks due to price volatility, structural complexity, and counterparty risk exposure. These instruments rely on Bitcoin as collateral, and their liquidation trigger mechanisms could amplify losses. Past bankruptcies of cryptocurrency lending institutions and extreme Bitcoin fluctuations (such as the 49% crash in March 2020) highlight the importance of adopting conservative financing strategies and sound risk management.
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Link: Fitch Ratings: Securities Supported by Bitcoin Pose Extremely High Risks [Copy]
