Reuters: Investors Become More Cautious After Crypto Market Correction, New Strategies May Gain Favor

BlockBeats News, December 17, according to Reuters, the recent sharp correction in the crypto market has made investors more cautious, with some high-leverage and high-valuation sectors being particularly affected. At the same time, this has also driven more attention to active risk management strategies.

With the rapid expansion of investment tools, investors can participate in the market through various means such as direct coin holding, spot ETF, options and futures, mining companies and "bitcoin treasury companies", exchanges, and infrastructure companies. However, the risk exposures of different paths vary significantly. John D`Agostino, Head of Institutional Strategy at an exchange, stated that the key lies in how investors use leverage and whether they hedge.

Since reaching a high of $126,223 on October 6, bitcoin once fell by 36% and is currently still down about 30% from its peak. "Bitcoin treasury companies" represented by Strategy have seen even larger declines, with Strategy's stock price down 54% from bitcoin's October high and 63% from mid-July. Japan's Metaplanet and a group of followers are also under pressure. Lyn Alden pointed out that a "localized bubble" had formed in related sectors, and investors are now reassessing premium risks.

In terms of mining companies, IREN, CleanSpark, Riot, and MARA are experiencing growing pains as they transition to AI data centers. VanEck Onchain Economy ETF manager Matthew Sigel stated that these companies previously benefited from the strong performance of the "crypto + AI" dual theme, but under the changing macro environment, high debt, and ongoing financing needs, their profitability is being questioned, resulting in pressure on their stock prices.