Bitcoin's recent decline below $100,000 has further dampened market sentiment, according to Bloomberg. Many Digital Asset Trusts (DATs), which previously traded above their net asset value (NAV), have now fallen below it. Retail investors have reportedly incurred losses totaling $17 billion this year on platforms like Strategy Inc. Akshat Vaidya, co-founder of Maelstrom, highlighted the risks, noting that an 80% physically-backed DAT is essentially a thin equity shell around a single high-volatility token. If the token's value drops by 50%, the stock price could plummet by 80% to 100% due to the disappearance of NAV premiums and forced selling pressure.
Bitcoin Falls Below $100,000, Pressures Market Sentiment
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