Strike has rolled out a new Bitcoin loan product designed to withstand market volatility during the ongoing bear market. These loans carry an interest rate of up to 14.2% and require borrowers to make timely payments to avoid liquidation risks.
According to Strike CEO Jack Mallers, as reported by CoinTelegraph, the relatively high interest rate reflects the cost of eliminating margin calls and forced liquidations, providing borrowers with more predictable repayment terms despite Bitcoin’s price swings.
For Japanese investors, who face unique regulatory and market dynamics in crypto lending, Strike’s approach could offer an alternative borrowing mechanism that mitigates sudden liquidation risks common in volatile markets.