Standard Chartered has issued a warning about potential risks for corporate Bitcoin holdings that could lead to forced liquidations if prices drop significantly. The bank highlights the possibility of a 22% price decline below the average purchase cost triggering extensive liquidation events, which might negatively impact the broader market. This risk arises from the high purchase costs associated with large-scale Bitcoin treasury holdings held at prices above $90,000. These assets could trigger forced liquidations if Bitcoin prices fall considerably. Geoff Kendrick, a leading expert at Standard Chartered, emphasizes the potential risks and provides an insight into the potential market repercussions: ‘We identify a pain level of 22% below the average purchase price as a potential liquidation level,’ he notes, referencing the recent collapse of Core Scientific. Corporate Bitcoin holders are facing potential challenges due to price volatility, which could lead to changes in their strategies and potentially affect Bitcoin’s market dynamics. The analysis from Standard Chartered follows closely after the 2022 collapse of Core Scientific, which saw significant losses linked to Bitcoin price drops. This incident serves as a warning reminder of the market risks associated with large-scale liquidations and their potential impact on investor confidence and the broader financial landscape. It is important to note that cryptocurrency markets are volatile, and investing involves inherent risks. Always conduct your own research before making any investment decisions and consult a financial professional.