Fitch Issues Warning on Bitcoin-Backed Securities 🚨
$BTC ChainCatcher reports that Fitch Ratings has flagged major market risks tied to Bitcoin-backed securities. These risks stem from:
Price volatility of Bitcoin
Structural complexity of the securities
Counterparty exposure
Since these securities are backed by Bitcoin, any liquidation events could amplify losses.
Past events, like the collapse of crypto lending platforms and Bitcoin’s 49% drop in March 2020, highlight why conservative financing and strong risk management are crucial.
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