According to Bloomberg, individual investors have lost about 17 billion USD while trying to invest indirectly in Bitcoin through companies like Metaplanet and Michael Saylor's MicroStrategy. A report by 10X Research states that the main cause comes from the excessively high stock valuations — when the stock prices far exceed the real value of the amount of Bitcoin that the company holds.
Many people buy stocks hoping to benefit from the rise of Bitcoin without having to directly own the cryptocurrency. However, as the market cools down, stock prices plummet, causing significant losses for retail investors. The report emphasizes that indirect investment through Bitcoin-related stocks can be much riskier than holding Bitcoin directly.
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Bloomberg: Individual investors lost 17 billion USD when indirectly investing in Bitcoin
According to Bloomberg, individual investors have lost about 17 billion USD while trying to invest indirectly in Bitcoin through companies like Metaplanet and Michael Saylor's MicroStrategy. A report by 10X Research states that the main cause comes from the excessively high stock valuations — when the stock prices far exceed the real value of the amount of Bitcoin that the company holds.
Many people buy stocks hoping to benefit from the rise of Bitcoin without having to directly own the cryptocurrency. However, as the market cools down, stock prices plummet, causing significant losses for retail investors. The report emphasizes that indirect investment through Bitcoin-related stocks can be much riskier than holding Bitcoin directly.