#StrategyBTCPurchase Fitch Ratings Warns of Extreme Risks in Bitcoin-Backed Securities

Fitch Ratings has issued a cautionary note emphasizing the exceptionally high risks tied to Bitcoin-backed securities. These financial products depend on Bitcoin as collateral, making them vulnerable to Bitcoin's notorious price volatility. Their complex structures and mechanisms for triggering liquidation can exacerbate losses, especially in stressful market conditions. The article references historical events such as the 49% Bitcoin crash in March 2020 and the bankruptcy of several cryptocurrency lending firms, underscoring the fragility of these instruments. Fitch advises the adoption of conservative financing practices and robust risk management frameworks to mitigate potential damage.#BTC #BinanceAlpha

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