Odaily Planet Daily reports that Fitch Ratings warns that due to price volatility, structural complexity, and counterparty risk exposure, Bitcoin-backed securities carry higher market value risk. These instruments rely on Bitcoin as collateral, and their liquidation trigger mechanisms could amplify losses. Past bankruptcies of cryptocurrency lending institutions and extreme Bitcoin volatility (such as the 49% crash in March 2020) highlight the importance of adopting conservative financing strategies and sound risk management.
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