LATEST: @Strike is rolling out "volatility-proof" bitcoin-backed loans, allowing users to borrow against BTC without margin calls or liquidations. Strike says borrowers can keep their bitcoin even if BTC falls 80%, as long as they continue making loan payments.

What happened

Strike announced a new "volatility-proof" loan product that lets users borrow cash using Bitcoin as collateral without margin calls or forced liquidations, and borrowers can keep their Bitcoin even if its price drops up to 80% as long as they keep making loan payments.

Confirmed

Global impact / market context

Removing the risk of forced sales means borrowers may feel safer using Bitcoin to get cash, which could attract more users to crypto loans and increase the amount of Bitcoin used as collateral.

Analyst inference

Crypto lending has grown as investors seek yield, but high volatility and liquidation events have deterred many. Strike’s approach addresses these pain points, reflecting a shift toward more borrower‑friendly structures in a market still grappling with price swings.

Analyst inference

What to watch

1. How many new borrowers sign up for Strike’s volatility‑proof loans and the total loan amount will show whether the market wants lower‑risk crypto credit. Proposed
2. Any regulatory guidance on keeping collateral while loans are active could shape how other lenders design similar products and affect the overall rules for crypto lending. Proposed
3. If Bitcoin’s price falls less sharply when borrowers keep their coins, it may suggest that this loan design reduces selling pressure during market downturns. Proposed

Affected assets

• BTC — Bitcoin

Evidence

• x.com