"Stocks Related to Virtual Assets Are Highly Volatile... Possibility of Sharp Decline in Economic Crisis"

Son Min

Summary

"Analysts warned that stocks related to virtual assets have a high possibility of sharp decline during an economic crisis."
"The decline in risk assets is influenced by macro factors such as exchange rates, trade wars, and economic recessions."
"It was mentioned that stocks related to virtual assets have higher volatility and corporate bankruptcy risks compared to Bitcoin."

As the virtual asset (cryptocurrency) market shows weakness, there is an opinion that investment in stocks related to virtual assets should be approached with caution.

On the 31st (local time), Owen Lau, an Oppenheimer analyst, stated in an interview with Bloomberg, "The decline in risk assets is due to macro factors such as tariffs, trade wars, and recession concerns," and added, "In the event of an economic crisis, stocks related to virtual assets are likely to be sold off more quickly." He further indicated that "stocks related to virtual assets carry higher risks and volatility than Bitcoin. Additionally, there is the added risk of corporate bankruptcy," suggesting caution in investing in stocks related to virtual assets.

BTC