The threat of selling by corporate BTC holders is a ‘systemic risk’ to markets: Coinbase

Public companies using leveraged strategies for Bitcoin can pose systemic risks to the crypto market, as noted by Coinbase. They identified 228 companies holding over 820,000 BTC, with 20 firms utilizing debt-heavy models similar to MicroStrategy.

Concerns arise that forced selling due to debt pressures could destabilize the market. Recent accounting changes allow for fair market value reporting, impacting BTC strategies and potentially increasing selling activities among these firms.

Despite risks, Coinbase sees U.S. Economic growth and regulatory progress as stabilizing factors for the crypto market. Rising long-term rates could affect leveraged companies, but overall sentiment for Bitcoin remains largely positive.