Fitch Ratings Cautions on Bitcoin-Backed Securities Due to Price Volatility
Fitch Ratings has issued a warning regarding Bitcoin-backed securities, citing a "high market value risk." According to Fitch, the significant price volatility associated with Bitcoin could rapidly diminish the collateral supporting these securities. This erosion of collateral increases the potential for losses among lenders and investors involved in these financial products. The ratings agency suggests that the inherent price swings in Bitcoin pose a considerable risk to the stability and value of securities that rely on it as collateral.
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