According to the Financial Times, with the decline of the cryptocurrency market, companies like MicroStrategy, leading the crypto treasury sector, are facing a vicious cycle: they are forced to sell their held tokens to support their stock prices, resulting in their market value falling below the value of the Bitcoin they hold. Analysts point out that this business model, which relies on rising coin prices and capital operations, is at risk of collapse.
In the face of a possible sell-off by financial companies, how should investors anticipate the market chain reaction?
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According to the Financial Times, with the decline of the cryptocurrency market, companies like MicroStrategy, leading the crypto treasury sector, are facing a vicious cycle: they are forced to sell their held tokens to support their stock prices, resulting in their market value falling below the value of the Bitcoin they hold. Analysts point out that this business model, which relies on rising coin prices and capital operations, is at risk of collapse.
In the face of a possible sell-off by financial companies, how should investors anticipate the market chain reaction?