Strike launches ‘volatility-proof’ Bitcoin loans amid bear market, but at a cost

Strike has introduced a new Bitcoin-backed loan product designed to avoid margin calls and forced liquidations, even if BTC falls sharply. The trade-off is a much higher cost: the product carries an APR of roughly 10.7% to 14.2%, compared with Strike’s standard 7.75% to 11.25% range, plus a shorter six-month term and strict on-time payment requirements. Borrowers can use Bitcoin as collateral at up to 45% loan-to-value. The launch comes during a bear market and follows customer complaints about Strike’s earlier loan product, which saw many liquidations when Bitcoin dropped 54% from peak to trough. The move underscores ongoing demand for crypto-backed liquidity products, but also highlights that volatility and pricing remain major barriers to broader adoption. The article is broadly constructive for Bitcoin’s financial utility, though not necessarily for near-term price action given the bearish backdrop and high borrowing costs.