Concerns over mass liquidation of corporate holdings if BTC plunges 22%...Double-edged sword of purchase pressure

The bitcoin (BTC) holding strategy of listed companies is forming strong buying pressure in the market, but it has been analyzed that if prices plummet, it could lead to a large-scale forced liquidation.

According to Coindesk, Standard Chartered's (SC) cryptocurrency analyst, Geoffrey Kendrick, explained, "As of the end of May, a total of 61 listed companies hold 673,897 BTC," which is about 3.2% of the total bitcoin supply.

He continued, "These companies are treating bitcoin as a kind of strategic reserve asset, so for now they are inducing continuous demand in the market, but the problem is price volatility," and warned, "If it falls more than 22% compared to the average price they bought at this point, it cannot be ruled out that forced liquidation may occur according to internal regulations or risk management standards."

The trend of using bitcoin as a reserve has spread, centered on American tech companies including Strategy. While this strategy is a big driver in market upturns, it can act as a burden on the market in sharp correction phases, highlighting the importance of risk management.