Reuters: Investors Turn Cautious After Crypto Market Correction, New Strategies Could Gain Favor
BlockBeats News, December 17th, according to Reuters, the recent sharp correction in the cryptocurrency market has made investors more cautious, with certain highly leveraged and overvalued sectors particularly affected. This has also fueled more interest in active risk management strategies.
As investment tools rapidly expand, investors can participate in the market through various means such as direct holding, spot ETFs, options and futures, mining companies and "Bitcoin Treasury Reserve Companies," exchanges, and infrastructure companies. However, the differences in risk exposure from different paths are significant. John D'Agostino, Head of Coinbase Institutional Strategy, stated that the key is how investors use leverage and whether they hedge.
Since Bitcoin hit a high of $126,223 on October 6th, it has fallen by 36% at one point, and is currently down by around 30% from its peak. "Bitcoin Treasury Reserve Companies" represented by Strategy have experienced even larger declines, with Strategy's stock price falling by 54% from the October Bitcoin high and 63% from mid-July. Japanese Metaplanet and a group of followers are also under pressure. Lyn Alden pointed out that the related sectors had previously formed a "local bubble," and investors are now reevaluating the premium risk.
As for mining companies, IREN, CleanSpark, Riot, and MARA are facing growing pains in the transition to AI data centers. Matthew Sigel, Manager of the VanEck Onchain Economy ETF, stated that these companies had previously benefited from the strong performance of the "crypto + AI" dual theme. However, in the context of macro environmental changes, high debt levels, and ongoing financing needs, their profitability is being questioned, leading to pressure on stock prices.
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