Coinbase's Head of Research, David Duong, warned that the growing trend of publicly traded companies accumulating Bitcoin treasuries could pose systemic risks to the cryptocurrency market. With over 126 companies currently holding a total of 819,857 BTC, valued at approximately $87 billion, the reliance on Bitcoin for boosting stock prices may lead to significant market consequences if its price declines. Duong highlighted that should firms be forced to liquidate their holdings to pay off investors, it could lead to a widespread market sell-off. Despite reassurance about Bitcoin's potential, he categorized these risks as significant, calling it an 'attack of the clones' scenario where many similar companies could simultaneously impact the market. Analysts from various institutions echoed concerns, predicting severe volatility if Bitcoin tumbles below certain price thresholds. The recent adaptation of accounting rules that allow firms to account for unrealized gains has catalyzed this trend, but it also raises alarms about potential market destabilization in the future.

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