Bitcoin Borrowing Boom: 88% of Holders Now Leveraging Their Coins

New research has uncovered a 'collateral gap' in Bitcoin lending, where investors are borrowing against their coins to buy more. According to the study, 88% of holders are open to crypto-backed loans to avoid capital gains taxes and maintain exposure.

This trend is driven by sophisticated investors who realize that selling Bitcoin is a financial mistake. They see it as an opportunity to leverage their assets, rather than cashing out. With Bitcoin consistently outperforming its borrowing costs, why would anyone sell?

The 'collateral gap' suggests that Bitcoin is not for spending, but for leveraging. This shift in mindset is changing the way investors approach crypto investments.